Divorced Parents Form 8332 And Months Child Lived With Me

[FederalInquirer]

I'm divorced, and the agreement is that my ex and I declare our child on alternate years. When I declare the dependent my ex signs form 8332 "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent", and I file it with my taxes

My ex works 3 days a week 12 hours each, which is considered full time. I take care of my child 3 days a week when she's working, so she can work. That is about 150-something days a year my child is with me

The problem I face is that even in the year that I can claim my child as a dependent, when TurboTax asks me for the number of months the child lived with me, I don't know what to enter... If I enter 6 months (b/c my days are less than half the year), I lose head of household, and I think I also lose some of the benefits of declaring a dependent. My refund decreases about $2K or $3K

So, even the year I can declare my child as a dependent, I don't get the full tax benefits of doing so

What would be the right way to handle this situation?

TIA

Nick

[xmasbaby0]

Are you the custodial parent?  Do you have an agreement with the other parent to allow the other parent to claim them--due to divorce or that you live apart and share custody?  Did one of you sign a Form 8332?

If there is a signed 8332 then the custodial parent retains the right to file as Head of Household, get earned income credit and the childcare credit.  The non-custodial parent gets the child tax credit for children under the age of 17.  If the child is 17 or older the non-custodial parent gets the $500 credit for other dependents.

If you and the other parent have a signed agreement, you need to indicate in MY INFO that you have such an agreement.

As far as the IRS is concerned, the custodial parent is the one with whom the child spent the most nights during the tax year--at least 183 nights.

[FederalInquirer]

Hi

Q) Are you the custodial parent?

A) In my state there's no "custodial parent", there is "shared parental responsibility"

Q) Do you have an agreement with the other parent to allow the other parent to claim them--due to divorce or that you live apart and share custody? A) The divorce agreement says that the parents will declare the child as a dependent on alternate years. On even tax years I can declare my child

Q) Did one of you sign a Form 8332? A) For tax year 2024 my ex signed it for me

The problem I face is that even in the year that I can claim my child as a dependent, when TurboTax asks me for the number of months the child lived with me, I don't know what to enter... If I enter 6 months (b/c my days are less than half the year), I lose head of household, and I think I also lose some of the benefits of declaring a dependent. My refund decreases about $2K or $3K

So, even the year I can declare my child as a dependent, I don't get the full tax benefits of doing so

What good is the divorce agreement, and having form 8332 signed, if I can not get the full tax benefits of declaring my child as a dependent?

What would be the right way to handle this situation?

Thank you in advance,

Nick

[KrisD15]

If Form 8332 is involved, it means you are only getting certain benefits relating to the child. 

Form 8332 is specifically "Release/Revocation of Release of Claim of Exemption for Child by Custodial Parent".

This means the custodial parent is allowing the non-custodial parent to claim the child's exemption, unfortunately this doesn't do much for the non-custodial parent since the exemption for dependents has been suspended through at least 2025.

This releases to you the Child Tax Credit/Additional Child Tax Credit 

but not the child for the Earned Income Credit, Child and Dependent Care Credit and not the Head of Household filing status. 

If you both want to have access to all the credits relating to the child on alternate years, you would need to alternate being the custodial parent year to year which means one would need to have the child in their home more than half the year every other year. 

These are IRS requirements, even a divorce decree can't alter tax code.