Is there a new publication stating that if a non-custodial parent is behind in child support payments, they are not allowed to claim that child as a dependent?

There is no such rule. What you may have heard of is a written analysis of what the current rules actually say. There are probably many of them. The custodial parent has first priority on claiming the children on her taxes; regardless of the amount of support provided by the non-custodial parent. The non-custodial parent can only claim the child as a dependent if the custodial parent gives permission (on form 8332) or if it's spelled out in a pre 2009 divorce decree. Even if a divorce decree, dated after 2008, gives the non-custodial parent the right to claim the child, he must still get form 8332 from the custodial parent. A properly worded decree should require her to provide that form.

If there is a court approved divorce agreement giving the noncustodial parent the right to claim the child, and that clause is not dependent on the payment of child support, then he can still claim the child, under that agreement. BUT the IRS will not enforce a post 2008 divorce decree.  The non-custodial parent's only remedy, if the custodial parent claims the child, is to take her back to court.

Here's something else, you should be aware of:  There is a special rule in the case of divorced & separated (including never married) parents. When the non-custodial parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. This "splitting of the child" is not available to parents who lived together at any time during the last 6 months of the year; then only one of you can claim the child for any tax reasons. The tax benefits may not be split in any other manner.

Note in particular that the non-custodial parent can never claim the Earned Income Credit, based on that child.

How did I not know all of this?!  How do you "split" the child without bunging everything up and having one or the other rejected?  We have literally nothing of taxes in our divorce decree.  It was a very simple divorce back in 2011, I received full custody and we went on our way.  Do we still fill out the form 8332 to both claim him as a dependent?

If you want to allow the ex to claim the child, you send him for 8332. If you don't, don't sent it to him (it would be polite to tell you will be claiming the child, so he cant). The splitting is so common that TurboTax can handle it. It's a matter of putting the right information on the tax forms.
You are the only one that fills out form 8332, you send it to him not the IRS. You do not both, technically, "claim him as a dependent".
He claims the child as a dependent and you have a "Qualifying child" for Earned income credit, head of household filing status and the day care credit.

If you do let him claim the children, you might want to point out, to him, the above info (that his claim is limited).

How do you not know this? Blame your congressman or woman. This is just one small part of  very complex tax laws.

There is no such change in the statute.  Exemptions are based on custody unless the custodial parent transfers the exemption to the noncustodial parent.

In the Indiana Parenting Time Guidelines it says that the parents should switch back and forth every year

What's fair is open to interpretation, and what's "fair" to one is likely to be considered unfair by the other.  The statute used to equate claiming the exemption to the parent who paid the most support of the child.  Now it is based on custody, with the custodial parent (the one with whom the child lives more than 1/2 of the year) the one to claim the exemption unless they transfer it to the other parent.

Obviously, local courts may write decrees to the contrary, but a local court decree is not binding on the federal Government.  Consequently, if a local court decree is not followed, the recourse is through a local court order, not the IRS.

The "Indiana Parenting Time Guidelines" adopted by the Indiana Supreme Court are just that - guidelines, not mandatory rules, and are not binding on the IRS.

See, this is why I would just switch back and forth each year...much simpler.  Thanks, though!

Many parents do this without any issues. However, if there's a falling out of some kind, all bets are off.

"See, this is why I would just switch back and forth each year...much simpler"

 It doesn't work that way. Just because you are NOT claiming the child for any tax attributes, does not meant that the ex can. He can NEVER claim that child for the Earned Income Credit, Head of Household or Day care credit.

I understand that...it just gets complicated. That's all I was saying!

In researching Indiana, I found this as to State taxes:

Requires a court to include in a court order that a parent who is ordered to pay child support may only claim the child as a dependent if the parent has paid at least 95% of the parent's child support for the calendar year for which the parent is ordered to claim the child as a dependent by January 31 of the following year. 

http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2011&request=getBill&docno=1427

That must have been what I'd heard!! Thank you!

First, the noncustodial parent cannot claim the child unless the custodial parent transfers that right via a signed IRS Form 8332. It doesn't matter if it is "his turn." Second, judgments for back child support can be seized from tax refunds.

Really?  In the Indiana Parenting Time Guidelines it says that the parents should switch back and forth every year, and in an effort to be fair that's what I've always done.  It's undeserved, but fair.  And I know they can be seized, I fully expect that to happen, but I had thought they were going to begin rejecting the entire thing if it was found they owed.  Oh well, all is well that ends well.

The IRS doesn't care what the divorce decree says, or what the parents agree to. However, if the custodial parents refuses to provide the noncustodial parent with the Form 8332 for the NC's parent "year," a Family Court action could be brought.

Hmm...interesting.

If the child has to be claimed by January 31 how is that possible if w2s do not have to be sent out until the latest of january 31?

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@Honestyrocks1024 wrote:

If the child has to be claimed by January 31 how is that possible if w2s do not have to be sent out until the latest of january 31?

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There is no date specific for a child to be claimed as a dependent on a tax return.  The 2019 tax return can be filed at any time on or before April 15, 2020 if taxes are owed.  Or at any time within the next 3 years from the due date if filing for a tax refund.

In researching Indiana, I

You're mixing apples and peanut butter here. The IRS could care less and is not bound by "any" lower authority ruling below that of a federal court. It "may" be applicable and enforceable on state taxes. But what any state may say, do, or decree does not apply to your federal return.  The IRS has their own rules on all this. That's the bottom line.

1st and foremost child support is not considered an income and most women that go after the ex make it their income, so  these days are literally spotted all over with hardships to the non custodial parent not only income wise but,  they have to worry as I do about the custodial parent not living up to decree so why have a place for non custodial parents to have terms with the other, we are just as well to give up our rights than to struggle trying to work, eat, be responsible (everything the custodial parent isn't) for they constantly take you back to court cause job losses and have you locked up for not being able to pay extortion money to a lazy woman that doesn't want to work to ease some of the problems the non custodial parent has to deal with and your child support divisions are all mostly divorced females that are against men having any rights to children so if I sound a little upset it's because when you have women that refuse to work and they think oh I will just take her or his dad back to court and get more money and the court backing the lazy woman then all dads need to just stop working and have the supposedly fair judges put us in jail for inability to pay for it doesn't even matter if you lost a job or had your back operated on and can't walk if the non custodial parent doesn't pay! Well they will pay one day at a time in jail now no one gets nothing do they. Just because a parent can't stick to the agreement they signed in court in front of God and all only to have the IRS say it's not income it sure the Hell not outcome. 

I realize this is an old thread but to chime in….

You don’t think it’s your responsibility to make sure your kid has food?! Here’s the thing. If your child’s mother didn’t feed your kid, DCS would have a HUGE problem with it. I assume you would also have a problem with it. So, you are essentially saying “She has to take care and provide and if she doesn’t, she should go to jail for neglect. Me? Noooo, I shouldn’t have to make sure the person taking care of MY kid has money to put food on the table for my kid to eat, but she better figure out how to do it!”

I get $66 a week for child support. Do you know how far that $66 goes? Here’s a hint: not far. Do I care? Not particularly. I can afford to take care of my kids without it but why should I have to be the only one doing so, when I didn’t knock myself up? I’ve lost my job, I’ve been POOR and you know what? I figured out how to feed my kids without child support. Their dad has a nice house, a nice car and goes out with his girlfriend ALL the time…. But he can’t pay $66 a week on a consistent basis. 

So no, you don’t get a free pass because you lost your job or had back surgery. Your kids still need to eat. I also don’t believe for a second that she is living off just your child support…. Government assisted and child support? Maybe bug child support doesn’t even cover half of daycare. 

@Jtodd2  YES 👏🏼👏🏼👏🏼