Table of Contents
The IRS 8332 form plays a crucial role in determining child custody and tax benefits for divorced or separated parents. This form allows one parent to release their claim to the child’s tax exemption, enabling the other parent to claim it instead. Typically, this situation arises when parents share custody or have a specific agreement regarding tax benefits. By completing and signing the IRS 8332 form, the custodial parent formally acknowledges the arrangement, ensuring that the non-custodial parent can benefit from the tax exemption. It is essential to understand that this form must be submitted to the IRS along with the non-custodial parent's tax return. Furthermore, the form can be used for multiple years if the agreement remains in place, but it must be updated or renewed if the circumstances change. Parents should also be aware of the deadlines associated with filing the form to avoid any complications during tax season.
Sample - IRS 8332 Form
Form 8332 |
|
|
Release/Revocation of Release of Claim |
|
OMB No. |
|||
|
|
|||||||
|
|
|
|
|
|
|
||
|
|
|
to Exemption for Child by Custodial Parent |
|
|
|
||
(Rev. October 2018) |
|
|
|
Attachment |
115 |
|||
Department of the Treasury |
|
|
▶ Attach a separate form for each child. |
|
Sequence No. |
|||
|
|
▶ Go to www.irs.gov/Form8332 for the latest information. |
|
|
|
|||
Internal Revenue Service |
|
|
|
|
|
|||
Name of noncustodial parent |
|
|
|
Noncustodial parent’s |
|
|
|
|
|
|
|
|
social security number (SSN) ▶ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: This form also applies to some tax benefits, including the child tax credit, additional child tax credit, and credit for other dependents. It doesn’t apply to other tax benefits, such as the earned income credit, dependent care credit, or head of household filing status. See the instructions and Pub. 501.
Part I Release of Claim to Exemption for Current Year
I agree not to claim an exemption for
Name of child
for the tax year 20 |
|
. |
Signature of custodial parent releasing claim to exemption |
|
Custodial parent’s SSN |
|
Date |
|
|
|
|
Note: If you choose not to claim an exemption for this child for future tax years, also complete Part II.
Part II Release of Claim to Exemption for Future Years (If completed, see Noncustodial Parent on page 2.)
I agree not to claim an exemption for
|
|
|
|
|
Name of child |
|
|
for the tax year(s) |
. |
|
|
|
|
||
|
(Specify. See instructions.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature of custodial parent releasing claim to exemption |
|
|
|
Custodial parent’s SSN |
|
Date |
|
Part III Revocation of Release of Claim to Exemption for Future Year(s)
I revoke the release of claim to an exemption for
|
|
|
|
Name of child |
|
|
for the tax year(s) |
. |
|
|
|
|
|
|
(Specify. See instructions.) |
|
|
|
|
|
|
|
|
|
|
||
Signature of custodial parent revoking the release of claim to exemption |
|
Custodial parent’s SSN |
|
Date |
||
General Instructions
What’s New
Exemption deduction suspended. The deduction for personal exemptions is suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. Although the exemption amount is zero, eligibility to claim an exemption may make you eligible for other tax benefits. See Pub. 501 for details. Although taxpayers can’t claim a deduction for exemptions, eligibility to claim an exemption for a child remains important for determining who may claim the child tax credit, the additional child tax credit, and the credit for other dependents, as well as other tax benefits. See the instructions and Pub. 501 for details.
Purpose of Form
If you are the custodial parent, you can use this form to do the following.
•Release a claim to exemption for your child so that the noncustodial parent can claim an exemption for the child and claim the child tax credit, the additional child tax credit, and the credit for other dependents (if applicable).
•Revoke a previous release of claim to exemption for your child.
Release of claim to exemption. Complete this form (or sign a similar statement containing the same information required by this form) and give it to the noncustodial parent. The noncustodial parent must attach this form or similar statement to his or her tax return each year the exemption is claimed. Use Part I to release a claim to the exemption for the current year. Use Part II if you choose to release a claim to exemption for any future year(s).
Note: If the decree or agreement went into effect after 1984 and before 2009, you can attach certain pages from the decree or agreement instead of Form 8332, provided that these pages are substantially similar to Form 8332. See
Revocation of release of claim to exemption. Use Part III to revoke a previous release of claim to an exemption. The revocation will be effective no earlier than the tax year following the year in which you provide the noncustodial parent with a copy of the revocation or make a reasonable effort to provide the noncustodial parent with a copy of the revocation. Therefore, if you revoked a release on Form 8332 and provided a copy of the form to the noncustodial parent in 2018, the earliest tax year the revocation
can be effective is 2019. You must attach a copy of the revocation to your tax return each year the exemption is claimed as a result of the revocation. You must also keep for your records a copy of the revocation and evidence of delivery of the notice to the noncustodial parent, or of reasonable efforts to provide actual notice.
Custodial Parent and
Noncustodial Parent
The custodial parent is generally the parent with whom the child lived for the greater number of nights during the year. The noncustodial parent is the other parent. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. For details and an exception for a parent who works at night, see Pub. 501.
Dependent Child
A dependent is either a qualifying child or a qualifying relative. See the instructions for your tax return for the definition of these terms. Generally, a child of divorced or separated parents will be a qualifying child of the custodial parent. However, if the special rule on page 2 applies, then the child will be treated as the qualifying child or qualifying
For Paperwork Reduction Act Notice, see back of form. |
Cat. No. 13910F |
Form 8332 (Rev. |
Form 8332 (Rev. |
Page 2 |
relative of the noncustodial parent for purposes of the dependency exemption, the child tax credit, the additional child tax credit, and the credit for other dependents.
Special Rule for Children of Divorced or Separated Parents
A child is treated as a qualifying child or a qualifying relative of the noncustodial parent if all of the following apply.
1.The child received over half of his or her support for the year from one or both of the parents (see the Exception below). If you received payments under the Temporary Assistance for Needy Families (TANF) program or other public assistance program and you used the money to support the child, see Pub. 501.
2.The child was in the custody of one or both of the parents for more than half of the year.
3.Either of the following applies.
a. The custodial parent agrees not to claim an exemption for the child by signing this form or a similar statement. If the decree or agreement went into effect after 1984 and before 2009, see
b. A
For this rule to apply, the parents must be one of the following.
•Divorced or legally separated under a decree of divorce or separate maintenance.
•Separated under a written separation agreement.
•Living apart at all times during the last 6 months of the year.
If this rule applies, and the other dependency tests in the instructions for your tax return are also met, the noncustodial parent can claim an exemption for the child.
Exception. If the support of the child is determined under a multiple support agreement, this special rule does not apply, and this form should not be used.
instead of Form 8332, provided that these pages are substantially similar to Form 8332. To be able to do this, the decree or agreement must state all three of the following.
1.The noncustodial parent can claim the child as a dependent without regard to any condition (such as payment of support).
2.The other parent will not claim the child as a dependent.
3.The years for which the claim is released.
The noncustodial parent must attach all of the following pages from the decree or agreement.
•Cover page (include the other parent’s SSN on that page).
•The pages that include all of the information identified in (1) through (3) above.
•Signature page with the other parent’s signature and date of agreement.
The noncustodial parent must ▲! attach the required information
even if it was filed with a return in CAUTION an earlier year.
Specific Instructions
Custodial Parent
Part I. Complete Part I to release a claim to exemption for your child for the current tax year.
Part II. Complete Part II to release a claim to exemption for your child for one or more future years. Write the specific future year(s) or “all future years” in the space provided in Part II.
To help ensure future support, you TIP may not want to release your
claim to the exemption for the child for future years.
Part III. Complete Part III if you are revoking a previous release of claim to exemption for your child. Write the specific future year(s) or “all future years” in the space provided in Part III.
The revocation will be effective no earlier than the tax year following the year you provide the noncustodial parent with a copy of the revocation or make a reasonable effort to provide the noncustodial parent with a copy of the revocation. Also, you must attach a copy of the revocation to your tax return for each year you are claiming the exemption as a result of the revocation. You must also keep for your records a copy of the revocation and evidence of delivery of the notice to the noncustodial parent, or of reasonable efforts to provide actual notice.
Example. In 2015, you released a claim to exemption for your child on Form 8332 for the years 2016 through 2020. In 2018, you decided to revoke the previous release of exemption. If you completed Part III of Form 8332 and provided a copy of the form to the noncustodial parent in 2018, the revocation will be effective for 2019 and 2020. You must attach a copy of the revocation to your 2019 and 2020 tax returns and keep certain records as stated earlier.
Noncustodial Parent
Attach this form or similar statement to your tax return for each year you claim the exemption for your child. You can claim the exemption only if the other dependency tests in the instructions for your tax return are met.
If the custodial parent released his TIP or her claim to the exemption for
the child for any future year, you must attach a copy of this form or similar statement to your tax return
for each future year that you claim the exemption. Keep a copy for your records.
Note: If you are filing your return electronically, you must file Form 8332 with Form 8453, U.S. Individual Income Tax Transmittal for an IRS
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.
You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Internal Revenue Code section 6103.
The average time and expenses required to complete and file this form will vary depending on individual circumstances. For the estimated averages, see the instructions for your income tax return.
If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.
File Specs
| Fact Name | Description |
|---|---|
| Purpose | The IRS Form 8332 is used to allow a non-custodial parent to claim a child as a dependent for tax purposes. |
| Eligibility | To use this form, the custodial parent must agree to release their claim to the child's exemption. |
| Filing Requirements | The form must be signed by the custodial parent and attached to the non-custodial parent's tax return. |
| State-Specific Forms | Some states may have their own forms for claiming child exemptions; check local laws for requirements. |
| Governing Laws | Federal tax law governs the use of Form 8332, while state laws may vary regarding child dependency claims. |
| Impact on Tax Benefits | Claiming a child as a dependent can provide significant tax benefits, including credits and deductions. |
IRS 8332 - Usage Guidelines
After obtaining the IRS 8332 form, it is essential to fill it out accurately to ensure proper processing. This form allows a custodial parent to release their claim to a child’s tax exemption to the non-custodial parent. Completing the form correctly will facilitate the tax filing process for both parties involved.
- Begin by downloading the IRS 8332 form from the IRS website or obtaining a physical copy.
- In the top section, fill in the name of the custodial parent. This is the parent who has physical custody of the child.
- Next, enter the Social Security number of the custodial parent.
- Provide the name of the non-custodial parent in the designated area.
- Include the Social Security number of the non-custodial parent.
- In the section for the child, enter the name of the child for whom the exemption is being released.
- Fill in the Social Security number of the child.
- Indicate the tax year for which the exemption is being released. This should be a specific year.
- Sign and date the form. The custodial parent must provide their signature to validate the release.
- Make a copy of the completed form for your records.
- Provide the original form to the non-custodial parent, who will attach it to their tax return.
Once the form is filled out and submitted, the non-custodial parent can claim the tax exemption on their return, provided all requirements are met. It is advisable to retain copies of all documents for future reference.
Your Questions, Answered
What is the IRS 8332 form?
The IRS 8332 form, also known as the "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent," is a document used by custodial parents to release their claim to a child’s tax exemption. This form allows the non-custodial parent to claim the child as a dependent on their tax return, which can lead to tax benefits for the non-custodial parent.
Who needs to fill out the IRS 8332 form?
The custodial parent, who has physical custody of the child for the greater part of the year, typically fills out this form. If the custodial parent agrees to let the non-custodial parent claim the child as a dependent, they must complete and sign the IRS 8332 form.
How do I fill out the IRS 8332 form?
To fill out the IRS 8332 form, start by entering your name, Social Security number, and the child’s information. You will also need to indicate the tax year for which you are releasing the exemption. Make sure to sign and date the form. If you are revoking a previous release, you must indicate that as well. It's important to follow the instructions carefully to ensure accuracy.
When should I submit the IRS 8332 form?
You do not need to submit the IRS 8332 form directly to the IRS when you file your tax return. Instead, the non-custodial parent should keep the signed form with their tax records. However, if the IRS requests it, the non-custodial parent must provide the form as proof of the claim.
Can the IRS 8332 form be revoked?
Yes, the IRS 8332 form can be revoked. If the custodial parent decides they no longer want to allow the non-custodial parent to claim the child as a dependent, they can complete a new IRS 8332 form indicating the revocation. This new form must be signed and dated by the custodial parent and should be given to the non-custodial parent.
What happens if I don’t use the IRS 8332 form correctly?
If the IRS 8332 form is not filled out correctly or if the non-custodial parent claims the child without the proper documentation, it could lead to issues with the IRS. This may result in the denial of the dependent exemption or potential penalties. It’s crucial to ensure that the form is completed accurately and that both parents understand their rights and responsibilities regarding the child’s tax exemption.
Common mistakes
-
Failing to include all required information. Ensure that all sections of the form are completed accurately.
-
Not signing the form. Both the custodial parent and the non-custodial parent must sign the form for it to be valid.
-
Using outdated versions of the form. Always download the latest version from the IRS website.
-
Incorrectly identifying the child. Make sure the child's name and Social Security number are entered correctly.
-
Not providing a valid reason for releasing the exemption. Clearly state the reason for completing the form.
-
Submitting the form without a copy for personal records. Keep a copy for your records after submission.
-
Failing to check the box for the correct tax year. Ensure you indicate the specific tax year for which the exemption applies.
-
Not following the instructions for submission. Review the IRS guidelines on how to submit the form properly.
-
Assuming the IRS will automatically process the form. It is the responsibility of the non-custodial parent to attach the form to their tax return.
-
Overlooking state tax implications. Understand that some states may have additional requirements regarding the exemption.
Documents used along the form
The IRS Form 8332 is crucial for divorced or separated parents who wish to transfer the right to claim a child as a dependent. However, several other forms and documents often accompany this form to ensure a smooth tax filing process. Below is a list of these related documents, each serving a specific purpose.
- Form 1040: This is the standard individual income tax return form used by U.S. taxpayers to report their annual income and calculate taxes owed or refunds due.
- Form 2441: This form is used to claim the Child and Dependent Care Expenses Credit, which helps taxpayers offset the costs of childcare while they work or look for work.
- Form 8862: If a taxpayer's claim for the Earned Income Credit was denied in the past, this form must be filed to re-establish eligibility for the credit in future tax years.
- Form 8867: This is the Paid Preparer's Due Diligence Checklist, which tax preparers must complete to ensure they have taken the necessary steps to verify a client's eligibility for certain credits.
- Form 8812: This form is used to claim the Additional Child Tax Credit, which allows taxpayers to receive a refund even if they do not owe taxes, based on their qualifying children.
- Form 8333: Similar to Form 8332, this document is used by non-custodial parents to claim a child as a dependent, but it is specifically for those who are not the custodial parent.
- Divorce Decree: This legal document outlines the terms of a divorce, including custody arrangements and any agreements regarding tax dependency claims.
- Child Support Agreement: This document specifies the terms of child support payments, which can be relevant when determining the financial responsibilities of each parent.
Understanding these forms and documents can facilitate a smoother tax filing experience for parents navigating custody arrangements. Each document plays a role in ensuring compliance with IRS regulations while maximizing potential tax benefits.
Similar forms
The IRS Form 8332 is often compared to the Child Tax Credit (CTC) application. Both documents aim to clarify eligibility for tax benefits related to dependents. While Form 8332 is specifically used to release a claim to exemption for a child, the CTC application allows taxpayers to claim a credit based on the number of qualifying children. In essence, both forms serve to establish the relationship between the taxpayer and the child, ensuring that tax benefits are allocated correctly based on custody and support arrangements.
Another document that bears similarity to Form 8332 is the IRS Form 8862, which is used to claim the Earned Income Tax Credit (EITC) after a prior denial. Like Form 8332, Form 8862 requires the taxpayer to provide specific information about their dependents. The goal is to confirm eligibility for tax credits that are contingent upon having qualifying children. Both forms require careful attention to detail, as inaccuracies can lead to delays in processing or denial of the claimed benefits.
The Form 1040, which is the standard individual income tax return, also shares similarities with Form 8332. While Form 1040 encompasses a wide range of tax information, it includes sections where taxpayers report dependents. Both forms necessitate accurate reporting of dependent information to ensure that taxpayers receive the appropriate deductions and credits. The relationship between the taxpayer and the dependent must be clearly established on both forms to avoid any potential issues with the IRS.
Form 2441, which is used to claim the Child and Dependent Care Credit, is another document that aligns with the purpose of Form 8332. Both forms require the taxpayer to provide details about their dependents. However, Form 2441 specifically focuses on expenses related to child care, whereas Form 8332 addresses the release of a dependent exemption. Each form plays a crucial role in determining the tax benefits available to taxpayers with dependents, emphasizing the importance of accurate and truthful reporting.
Lastly, the IRS Form 8863, which is used to claim education credits, can also be seen as similar to Form 8332. Both documents require information about dependents, particularly in relation to qualifying educational expenses. Form 8863 allows taxpayers to benefit from credits related to higher education costs, while Form 8332 is concerned with the tax implications of claiming a dependent. Each form is essential for ensuring that taxpayers maximize their benefits while adhering to IRS regulations.
Dos and Don'ts
When filling out the IRS 8332 form, it's essential to be careful and thorough. This form is used to release a claim to exemption for a child by a custodial parent. Below are some important dos and don'ts to keep in mind.
- Do read the instructions carefully before starting.
- Do ensure that all information is accurate and complete.
- Do sign and date the form; an unsigned form is invalid.
- Do provide your Social Security number and that of the child.
- Do keep a copy of the completed form for your records.
- Don't leave any required fields blank.
- Don't forget to check for any updates to the form or instructions.
- Don't submit the form without confirming that it is the correct version.
- Don't assume that filing the form guarantees you will receive the tax benefits.
By following these guidelines, you can navigate the process more smoothly and avoid common pitfalls. Taking the time to fill out the IRS 8332 form correctly can save you from future complications.
Misconceptions
The IRS 8332 form can be confusing for many people. Here are five common misconceptions about it:
- It’s only for divorced parents. Many believe that only divorced or separated parents can use Form 8332. However, it can also apply to parents who never married but share custody of their child.
- Filing the form guarantees the tax deduction. Some think that simply filing Form 8332 ensures they will receive the child tax deduction. In reality, the IRS requires certain conditions to be met, such as who the child lives with for the majority of the year.
- Only one parent can claim the child. There’s a belief that if one parent claims the child on their taxes, the other cannot. This is not true; Form 8332 allows one parent to release their claim, but it doesn’t prevent the other from claiming the child in future years if they meet the requirements.
- It must be filed every year. Some people think they need to submit Form 8332 every year. In fact, it only needs to be filed once unless there are changes in custody or the agreement between parents.
- Form 8332 is the only way to transfer the exemption. Many assume that Form 8332 is the only method for transferring the dependency exemption. However, parents can also agree in writing outside of the form, but they must follow IRS guidelines to ensure it’s valid.
Understanding these misconceptions can help parents navigate the tax process more effectively. Always consider consulting a tax professional for personalized advice.
Key takeaways
Filling out the IRS Form 8332 can be a crucial step for divorced or separated parents when it comes to claiming tax benefits for their children. Here are some key takeaways to keep in mind:
- Purpose of the Form: Form 8332 allows a custodial parent to release their claim to the child’s tax exemption to the non-custodial parent.
- Eligibility: Only the custodial parent can fill out this form. This is the parent with whom the child lived for the greater part of the year.
- Signature Required: The custodial parent must sign the form. Without their signature, the non-custodial parent cannot claim the exemption.
- Filing the Form: The non-custodial parent should attach the completed Form 8332 to their tax return when filing.
- Multiple Children: If there are multiple children, the form can be used for more than one child, but each child’s information must be clearly indicated.
- Revocation: The custodial parent can revoke the release of the exemption in future years. This requires a new Form 8332 to be submitted.
- Tax Benefits: Claiming the exemption can significantly reduce the non-custodial parent's taxable income, potentially leading to a larger refund or lower tax bill.
- Consult a Professional: It’s always wise to consult with a tax professional to ensure that the form is filled out correctly and to understand the implications.
Understanding these points can help parents navigate the complexities of tax claims effectively. Proper use of Form 8332 can lead to substantial tax benefits for the non-custodial parent while ensuring compliance with IRS regulations.