Divorce Agreement after kids are 18 years old.

[portalmenow]

According to my divorce agreement, my ex is allowed to claim my son as a dependent and I am allowed to claim my daughter. There are additional rules for when only one child can be claimed, but that is not yet the case.  I have two questions:  (1) Does it matter where the kids live given that the tax exemptions are spelled out in the divorce agreement?  Originally they both lived with me, but my daughter now lives  with my ex.    (2) Both kids are over 18 years old.  What happens if they don't want to follow the divorce agreement?  If my daughter does not want to be claimed as a dependent by me, can I still claim her, or because of her age can she do as she wants?                                                            

[Texas Roger]

While the link in TurboTaxVanessa's answer sort of explains the situation, here is a more complete description of the special rules for divorced parents:

For divorced or separated parents or parents who live apart, the custodial parent, if eligible, or other eligible person who the child lived with for more than half the year (183 nights in 2018), can claim head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit.

The non-custodial parent, if allowed by divorce decree or consent of the custodial parent on form 8332 or similar signed statement, can claim the dependency  and child tax credit. For post-2008 divorce decrees or agreements, form 8332 or similar signed statement is required. The child tax benefits cannot be split any other way.

If the child meets the requirements to be claimed by either parent, the child can't claim themselves even if the parent chooses not to claim them.

[portalmenow]

Just to be sure I understand - my divorce decree does not connect living arrangements to tax dependency exemptions.  It simply states that I can claim my daughter as an dependent, and my ex can claim my son.

My daughter used to live with me but no longer does.  She is a 19 yr old student .  Can I claim the dependency because of the divorce decree or would I need an  8332 because she does not live with me?  

The divorce decree allows my ex to claim my son, who does live with me.  My ex gave me form 8332, and it is clear that he can be claimed as a dependent.

I have never read that a child can't claim themselves even if the parent chooses not to claim them. Is there an IRS pub with that statement, and what would happen if they file and claim themselves?

[Texas Roger]

Tax law overrides a divorce decree. If the child does not live with the parent who claims the dependency, the other parent must provide form 8332 to the parent who is claiming the dependency.

I am not sure where to find the IRS rule that a child who qualifies to be claimed by a parent can't claim them self even if the parent doesn't claim them. If the parent doesn't claim them but could have and the child claims them self, it's not likely that the IRS would challenge it.

[Vanessa]

Yes, it matters where they live.  If the kids, who are over 18 are fulltime students, they need to live with your for MORE than half of the year in order for you to claim them for any credits or to use the Head of Household status.  With the new tax laws, the only credit you would get for an 18-year-old would be the $500 NonRefundable Other Dependent Credit if they did not provide more than half of their own support.

If they are NOT fulltime students, then you would only be able to claim them if they earned less than $4,150 and you would have had to provide more than half of their support for the year in order to get the $500 NonRefundable Other Dependent Credit. 

In either case, they would need to have lived with you for more than 1/2 the year for you to claim head of household.

https://turbotax.intuit.com/tax-tips/family/guide-to-filing-taxes-as-head-of-household/L4Nx6DYu9