California Tax Exemption For A Child Of Divorce
After a divorce in California, family circumstances can change drastically and pose issues that are difficult to discuss let alone pursue through settlement or in court. Couples experiencing the emotional strains of a divorce have to also think about how each individual’s taxes will be affected in regards to tax exemption for a minor child or children involved.
The designated custodial parent can automatically claim the child as a dependent on his or her tax return and get the write-off. However, the parents can discuss other options and assign the exemptions in any way they can agree on. When divorcing couples have two or more children, the parents have the choice of frequently dividing the exemptions between them by child or filing a multiple support agreement. It is unfortunate yet understandable when spouses filing for divorce disagree on California child custody matters and tax exemption for the child or children.
A copy of the Internal Revenue Service (IRS) Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent) must be filed with the tax return for whichever year an exemption is given to the noncustodial parent and be signed by the custodial parent. Through some court orders or negotiated settlements between parents, the custodial parent is required to sign over the exemption on a semi-annual or annual basis. If you are the custodial parent, letting your ex-spouse have the child’s exemption does not prevent you from claiming “head of household” filing status instead of “single” filing status.