A frequent question that arises in divorces is: Who gets the tax exemptions for the kids?
The Internal Revenue Code governs allocation of dependency exemptions under Section 152, and state law follows the Federal IRC.
In its briefest form, the parent who has custody of a child is automatically entitled to the exemption unless it is waived by that parent. Waiver is accomplished by means of agreement of the parents and execution of IRS Form 8332 which the claiming non-custodial parent must attach to his or her income tax return.
The Court now tells us that distribution of the tax exemption is a child support issue and so may be modifiable under the much more liberal rules governing child support awards.
For this reason, even if a custodial parent refuses to part with an income tax dependency exemption, a non-custodial parent may now petition the divorce court for redistribution of the exemption. Usually, the dependency exemptions are divided between the parents.
This, of course, can result in substantial tax savings to those tax payers in high tax brackets.
Cunningham Dalman, PC publishes this web site and its component parts to inform users about our firm, our attorneys and general new developments in the law. The web site and blogs are not intended as legal advice on any matter. There are many factors that may affect your situation. You should not act or refrain from acting because of information found here without first seeking appropriate legal or other professional advice from someone who is familiar with your particular circumstances.
In the operation of this web site and our blogs, we do not intend to create an attorney-client relationship with you and no such relationship shall be created by your use of this web site. Such a relationship can only be established to the extent an attorney at Cunningham Dalman, PC expressly agrees to undertake the relationship. Please do not communicate to us any information you regard as confidential unless and until we have established a formal attorney-client relationship with you. Any information you send to us before we establish an attorney client relationship may not be privileged or confidential. Information you send to us over the Internet may not be secure.