Dependent Exemption by Dependent Exemption by Don Fitch CPA CITP (877)CPA-Help or (877)272-4357 Website www.Paylesstax.com

wwwPaylesstaxcom
Toll Free (877)CPA-Help or (877)272-4357

Don Fitch CPA's professional services include Guaranteed results with the IRS, tax returns for ALL 50 STATES, Financial and IRS Audits, Financial Reviews, Compilations, IRS Discovery's, Natural Disaster Relief, Lender Letters, and CPA Employment Verification

Dependent Exemption
Page

Chat Live with a CPA

Free Website Contact Form sent directly to Don Fitch, CPA

Free Phone Tax Consultation

Free Tax Forms from 1980 to Present

Free Online Tax Chat with Don Fitch, CPA

Free Video Conference with Don Fitch, CPA

Actual IRS Wage Levy Releases

Actual IRS Offers in Compromise

Actual Testimonials

Actual Lien Releases

Don Fitch CPA's Guaranteed IRS Wage Levy Release Program

Haven't Filed in Years! What should I Do?

What to Look for in a CPA

Taxes and Bankruptcy

We prepare Federal and State Tax Returns for ALL 50 States!

(Individual)

(Amended)

(Partnership)

(Trust)

(Corporation)

(Sub S-Corporation)

(Estate)

(Gift Tax)

(Federal Unemployment Taxes)

(Payroll Taxes)

(Non Profit)

(Information)

Don Fitch CPA's Resume

Webmaster's Resume

Don Fitch CPA's Employment Opportunities

Directions to Don Fitch CPA

Dependency Exemption
TEST IN THE CASE OF DIVORCED
PARENTS

For parents who are divorced, legally separated under a decree of divorce or separate maintenance, separated under a written separation agreement, or who live apart from each other at all times during the last six months of the year, the child care credit is only available to the custodial parent and not the non-custodial parent. This rule holds even if the
non-custodial parent may claim the child as a dependent for the current taxable year. The non-custodial parent is not entitled to any credit for employment-related expenses, even if the child resides with the non-custodial parent for part of the year.

COMPLIANCE TIP: A custodial parent who has released the dependency exemption to the non-custodial parent must attach a signed Form 8332, Release of Exemption for Child of Divorced or Separated Parents, or a similar statement agreeing not to claim the exemption on her return. A similar statement would be a divorce decree or separation agreement
that went into effect after 1984 and that allows the non-custodial parent to claim the child's exemption without any conditions, such as support payments.

A non-custodial parent who is a party to a divorce agreement entered into before 1985 is entitled to the credit if she qualified for the dependency exemption under the divorce agreement and gives at least $600 for the child's support annually.

The child is treated as a qualifying individual if all of the following conditions are satisfied: (1) the child is under the age of 13 or is not able to care for himself; (2) the child receives over half of his support during the taxable year from one or both parents; and (3) the child is in custody of one or both of the parents for more than one-half of the taxable year. Code Section 21(e)(5).

CAUTION: In divorce situations, a spouse who has released the dependency exemption to the non-custodial parent must have custody of the child for more than half of the year in order to be entitled to the credit. Code Section 21(e)(5).