MORE INFORMATION FOR DIVORCEES WITH CHILDREN

Noncustodial parents: Bad news on claiming dependency exemptions. Any conditions in the divorce agreement nixes the exemption if the parent with custody hasn’t signed Form 8332 to waive his or her right to the exemption.

For divorces before July 3, 2008, a signed divorce decree awarding the exemption to the noncustodial parent is OK in lieu of the 8332. But now, the Service says that it will reject signed decrees that have conditions, such as requiring payment of a settlement, that must be satisfied before the noncustodial parent gets the break.

This is so even if the parent has documentation showing that the condition was met.

That’s even more reason to ensure that the custodial parent provides a signed Form 8332.