What Is Tax Form 8332?
Form 8332 is the form custodial parents can use to release their right to claim a child as a dependent to the noncustodial parent. The form can be used for current or future tax years. Additionally, custodial parents can use tax Form 8332 to revoke the release of this same right.
Tax Form 8332 – What You Need to Know
The full name of Form 8332 is Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. While the tax benefit of exemptions is $0 until 2025 under tax reform, there are other tax benefits a noncustodial can claim with a release from the custodial parent.
This form also applies to some tax benefits, including the:
- Child tax credit
- Additional child tax credit
- Credit for other dependents
However, Form 8332 doesn’t apply to other tax benefits, such as the:
- Earned income credit (EIC)
- Child and dependent care credit
- Head of household filing status
In the past, divorce decrees or separation agreements could be used to substitute Form 8332. However, this is no longer permitted.
Another substitute option exists, but it’s not very practical. You can substitute Form 8332 with a written document that includes the same information as the form provided the document’s sole purpose is to serve as a substitute. Given the work needed to create a substitute tax Form 8332 that contains all the requirements, it’s probably easiest to use the form itself.
What If You’ve Failed to File Form 8332 Release of Claim?
In some cases, noncustodial parents have claimed their children, but never received a signed Form 8332 or a substitute statement. However, that oversight might have consequences. If you’re audited, the IRS might disallow your exemptions (from previous years), child tax credit or credit for other dependents, without one of these statements.
Is Form 8332 Needed When Someone Else Claims My Child?
While another relative may be able to claim your child as a qualifying child, Form 8332 would not be needed to claim the dependent.
In order for the relative to claim the child, he or she would have to live with the relative (ex. grandparent, uncle, aunt) for over half of the year, as well as meet other qualifications. Additionally, the child must not provide more than half of his/her support.
Questions About Form 8332?
If you need help with tax Form 8332 or understanding if you’re eligible to claim the credits mentioned above, our experts can help. Our Tax Pros know the ins and outs of taxes and are dedicated to helping you understand your options.
Make an Appointment with one of our Tax Pros today.
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