Form 8332

Form 8332

A form that a custodial parent files with the IRS in which the parent agrees not to claim the child tax credit for a child. This allows the non-custodial parent to take the credit. This form is also filed to revoke the previous agreement.
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* The custodial parent signs Form 8332, Release/ Revocation of Release of Claim to Exemption for Child by Custodial Parent (or a substantially similar document), stating that he or she will not claim the exemption for the child, and the noncustodial parent attaches a copy of the form to his or her own original or amended return for each year he or she claims the exemption and/or child tax credit.
To do so, the custodial parent must sign Form 8332, Release/Revocation of Release to Claim Exemption for Child, and attach it to the tax return of the noncustodial parent.
Written Declaration of the Exemption Waiver: Form 8332
Although the mother's entitlement to any dependency exemption was contingent on her being employed, she was not required to sign Form 8332, Release/Revocation of Release of Claim to Exemption for Child hy Custodial Parent.
The above section basically says that the custodial parent is entitled to claim a dependency exemption for a child unless he or she signs off on Form 8332, which would allow the non-custodial parent to claim the child.
At the time, the ex-wife signed Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents.
However, for tax years beginning after July 2, 2008, to properly waive the exemption in favor of the noncustodial parent for federal income tax purposes, the custodial parent must sign a properly filled out Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or a similar statement.
* Step two--Once the first step is met, the custodial parent releases the claim to the noncustodial parent, using Form 8332, Release/Revocation of Release Claim to Exemption for Child by Custodial Parent, and files it with the tax return (RC section 152[e][2]).
However, the custodial parent can release to the noncustodial parent the right to claim the tax benefits by signing a written declaration (consent) to that effect, IRS Form 8332. A Florida divorce court can require the custodial parent to relinquish the dependency exemption by executing the proper form to do so.
1.152-4(e), the IRS stated in Publication 501, Exemptions, Standard Deduction, and Filing Information, that a noncustodial parent could attach to his or her tax return certain pages of a divorce decree that conformed to the substance of Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, to serve as the written declaration required by Sec.
In a divorce, the non-custodial parent can claim the dependency deduction with a valid Form 8332.
Taken together, the cases illustrate how a properly executed and filed Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is the key to releasing a claim of exemption and outweighs state court orders.