IRS 8332 Template

IRS 8332 Template

The IRS Form 8332 is a document used by custodial parents to release their claim to a child's tax exemption, allowing the non-custodial parent to claim the child on their tax return. This form is essential for ensuring that both parents can benefit from tax deductions related to their dependent children. Understanding how to properly fill out and submit this form can lead to significant financial advantages, so take the next step by clicking the button below to get started.

Table of Contents

The IRS 8332 form plays a crucial role in the realm of tax deductions, particularly for divorced or separated parents. This form allows a custodial parent to release their claim to a child’s tax exemption, enabling the non-custodial parent to benefit from it. By completing and signing this document, the custodial parent formally grants permission for the non-custodial parent to claim the child as a dependent on their tax return. It’s important to note that this release can apply to one specific tax year or multiple years, depending on the agreement between the parents. The IRS requires that the form be filled out accurately and submitted along with the non-custodial parent’s tax return to ensure compliance and avoid potential disputes. Understanding the nuances of the IRS 8332 form is essential for parents navigating the complexities of tax benefits post-divorce or separation, as it can significantly impact their financial situation. With the right information and careful attention to detail, parents can effectively utilize this form to maximize their tax benefits while fostering a cooperative co-parenting relationship.

IRS 8332 Sample

Form 8332

 

 

Release/Revocation of Release of Claim

 

OMB No. 1545-0074

 

 

 

 

 

 

 

 

 

 

 

 

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 Post-1984 and pre-2009 decree or agreement on page 2.

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. 10-2018)

Form 8332 (Rev. 10-2018)

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 Post-1984 and pre-2009 decree or agreement below.

b. A pre-1985 decree of divorce or separate maintenance or written separation agreement states that the noncustodial parent can claim the child as a dependent. But the noncustodial parent must provide at least $600 for the child’s support during the year. This rule does not apply if the decree or agreement was changed after 1984 to say that the noncustodial parent cannot claim the child as a dependent.

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.

Post-1984 and pre-2009 decree or agreement. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent can attach certain pages from the decree or agreement

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.

Post-2008 decree or agreement. If the divorce decree or separation agreement went into effect after 2008, the noncustodial parent can’t attach certain pages from the decree or agreement instead of Form 8332.

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 e-file Return. See Form 8453 and its instructions for more details.

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.

Document Attributes

Fact Name Description
Purpose The IRS Form 8332 allows a custodial parent to release their claim to a child's tax exemption, enabling the non-custodial parent to claim it instead.
Eligibility Only parents who are divorced, legally separated, or who live apart for the last six months of the year can use this form.
Filing Requirements The non-custodial parent must attach Form 8332 to their tax return to claim the child as a dependent.
State-Specific Laws In some states, like California, family law governs the custody and support arrangements, which may affect the use of Form 8332.

IRS 8332: Usage Instruction

Filling out IRS Form 8332 can be a straightforward process if you follow the necessary steps carefully. This form is essential for those who need to declare a release of claim to exemption for a child. Completing it accurately is important for ensuring proper tax filing.

  1. Obtain a copy of IRS Form 8332. You can download it from the IRS website or request a physical copy from the IRS office.
  2. Read the instructions provided with the form to understand the requirements and implications of the information you will provide.
  3. Fill in your name and Social Security number in the designated spaces at the top of the form.
  4. Provide the name and Social Security number of the child for whom you are releasing the claim.
  5. Indicate the tax year for which you are releasing the claim by writing it in the appropriate section.
  6. Sign and date the form. This step is crucial as it verifies your consent to the release.
  7. Make a copy of the completed form for your records before submitting it.
  8. Submit the form to the appropriate party, typically the other parent or guardian, as specified in your agreement.

Frequently Asked Questions

  1. What is IRS Form 8332?

    IRS Form 8332 is a document that allows a custodial parent to release their claim to the child’s dependency exemption to the non-custodial parent. This form is particularly important for divorced or separated parents who share custody of their children. By completing this form, the custodial parent grants the non-custodial parent the right to claim the child as a dependent on their tax return.

  2. Who should fill out Form 8332?

    The custodial parent, who is the parent with whom the child lives for the greater part of the year, should fill out Form 8332. This form is necessary when the custodial parent agrees to allow the non-custodial parent to claim the child as a dependent. Both parents should understand the implications of this decision, especially regarding tax benefits.

  3. How does one complete Form 8332?

    To complete Form 8332, the custodial parent must provide their name, Social Security number, and the name and Social Security number of the child. The form also requires the custodial parent to indicate the tax year for which the exemption is being released. After filling out the form, it should be signed and dated. It’s important to keep a copy for personal records.

  4. When should Form 8332 be submitted?

    Form 8332 should be submitted along with the non-custodial parent's tax return. It is advisable to attach the completed form to the return when filing, although it is not required to be submitted to the IRS unless requested. The form should be provided to the non-custodial parent before they file their taxes to ensure they can claim the exemption properly.

  5. Can Form 8332 be revoked?

    Yes, Form 8332 can be revoked. The custodial parent has the right to revoke the release of the dependency exemption by completing a new Form 8332, indicating that the previous release is no longer valid. This new form must be signed and dated. It’s crucial to communicate this change to the non-custodial parent to avoid confusion when filing taxes.

  6. What happens if Form 8332 is not filed?

    If Form 8332 is not filed, the non-custodial parent may not be able to claim the child as a dependent. The IRS requires this form to validate the claim of dependency exemption by the non-custodial parent. Without it, the custodial parent will automatically retain the right to claim the child.

  7. Are there any tax benefits associated with Form 8332?

    Yes, there are significant tax benefits associated with claiming a child as a dependent. The non-custodial parent may be eligible for various tax credits, such as the Child Tax Credit and the Earned Income Tax Credit, which can result in substantial savings. Therefore, understanding the implications of Form 8332 is essential for both parents to maximize their tax benefits.

Common mistakes

Filling out the IRS Form 8332 can be a crucial step for divorced or separated parents who wish to transfer their right to claim a child as a dependent. However, mistakes can easily occur during this process, leading to complications with tax filings. One common mistake is failing to sign the form. Both parents must provide their signatures to validate the transfer of the dependency exemption. Without both signatures, the form is considered incomplete, and the intended tax benefits may not be realized.

Another frequent error involves incorrect dates. The form requires specific dates regarding the release of the exemption. If these dates are not filled out correctly, the IRS may question the validity of the claim. It is essential to ensure that the dates reflect the correct tax year and the period for which the exemption is being transferred.

Some individuals overlook the importance of including all relevant children on the form. If multiple children are involved, it is vital to list each one clearly. Omitting a child can lead to misunderstandings and potential disputes regarding who is entitled to claim which child as a dependent.

Additionally, many people fail to provide a copy of the completed Form 8332 with their tax return. The IRS requires that this form be submitted alongside the tax return for it to be considered valid. Neglecting to include it can result in delays in processing the return or even the denial of the dependency claim.

Another mistake is misunderstanding the implications of the form. Some parents may think that signing the form relinquishes all rights to claim the child in future years. In reality, Form 8332 is only valid for the tax year specified unless otherwise stated. It is crucial to understand the terms of the agreement to avoid confusion in subsequent years.

Inaccurate or incomplete information can also lead to issues. For instance, using nicknames instead of legal names can create discrepancies in IRS records. Ensure that all names match exactly as they appear on Social Security cards to prevent complications.

Moreover, some individuals may not be aware of the need to revoke the form if circumstances change. If the custodial parent decides to reclaim the dependency exemption, they must formally notify the non-custodial parent and the IRS. Failing to do so can result in disputes that are difficult to resolve.

Another common oversight is not keeping a copy of the completed form for personal records. It is always wise to retain a copy of any tax documents submitted to the IRS. This practice can provide clarity and serve as a reference in case any questions arise in the future.

Lastly, misunderstanding the filing deadlines can lead to missed opportunities. Parents should be aware of the timelines for submitting Form 8332 to ensure that they can claim the exemption in a timely manner. Awareness of these deadlines is essential for maximizing tax benefits and avoiding unnecessary complications.

Documents used along the form

The IRS Form 8332 is used to release a claim to exemption for a child, allowing a non-custodial parent to claim a child as a dependent for tax purposes. When filing this form, several other documents may also be relevant. Here are a few commonly used forms and documents that often accompany the IRS 8332.

  • Form 1040: This is the standard individual income tax return form used by taxpayers to report their income, claim deductions, and calculate their tax liability. The non-custodial parent will need this form to claim the child as a dependent.
  • Form 8862: This form is used to claim the Earned Income Credit (EIC) after it has been disallowed in a previous year. If the non-custodial parent is claiming the child for EIC purposes, this form may be necessary.
  • Form 2441: This form is used to claim the Child and Dependent Care Credit. If the non-custodial parent has incurred childcare expenses for the child, this form will be relevant.
  • Custody Agreement: This document outlines the custody arrangement between parents. It may be helpful to have this agreement on hand to clarify the custodial status of the child when filing taxes.

Having these forms and documents ready can streamline the tax filing process and ensure compliance with IRS regulations. Always check for any updates or changes to forms and requirements each tax year to stay informed.

Similar forms

The IRS Form 8332 is a document used by custodial parents to release a claim to an exemption for their child. It is often compared to several other forms that serve similar purposes in tax situations. Below is a list of documents that share similarities with Form 8332:

  • Form 1040: This is the standard individual income tax return form. Like Form 8332, it is used to report income and claim exemptions, including dependent exemptions.
  • Form 8862: This form is used to claim the Earned Income Credit after a previous denial. It serves a similar purpose in that it requires documentation to validate a claim, much like Form 8332 does for child exemptions.
  • Form 8812: This form is used to claim the Additional Child Tax Credit. Both forms are related to tax benefits for dependents and require specific eligibility criteria to be met.
  • Form 8333: This form is used by non-resident aliens to claim a tax treaty exemption. Like Form 8332, it involves the transfer of tax benefits and requires signatures from both parties.
  • Form W-4: This form is filled out by employees to determine tax withholding. It can indirectly relate to Form 8332 as both involve dependent claims that affect tax liability.
  • Form 1098-T: This form reports tuition payments for educational expenses. While not directly related to exemptions, both forms can influence tax credits and deductions related to dependents.
  • Form 2441: This form is used to claim the Child and Dependent Care Credit. Similar to Form 8332, it involves tax benefits associated with dependents and requires specific documentation.

Dos and Don'ts

When completing the IRS 8332 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Below are important dos and don'ts to keep in mind.

  • Do ensure that you are eligible to claim the child as a dependent.
  • Do fill out the form completely and accurately, including all necessary information.
  • Do sign and date the form to validate your submission.
  • Do keep a copy of the completed form for your records.
  • Don't submit the form without checking for errors or omissions.
  • Don't forget to provide the other parent's information if required.
  • Don't assume that the IRS will automatically accept your claim without proper documentation.

By adhering to these guidelines, you can navigate the process of completing the IRS 8332 form more effectively. Take the time to ensure that everything is in order, as this can prevent complications in your tax filing process.

Misconceptions

The IRS Form 8332 is often surrounded by misunderstandings. This form is crucial for divorced or separated parents who wish to allocate the tax benefits of claiming a child as a dependent. Here are some common misconceptions about Form 8332:

  • Form 8332 is only for divorced parents. Many believe this form is exclusively for those who are divorced. In reality, it can also be used by unmarried parents or those who have separated but not legally divorced.
  • Only one parent can claim the child. While it is true that only one parent can claim a child as a dependent in a given tax year, the other parent can still release their claim to the dependency exemption using Form 8332.
  • Form 8332 must be filed with the IRS. Some think that this form needs to be submitted directly to the IRS when filing taxes. Instead, it should be kept with your tax records and only presented if requested by the IRS.
  • Filing Form 8332 guarantees you will receive the tax benefits. There is a belief that submitting this form automatically ensures the claiming parent will receive the tax benefits. However, eligibility for these benefits depends on various factors, including income and filing status.
  • Form 8332 is a permanent agreement. Many assume that once Form 8332 is signed, it remains in effect indefinitely. In truth, the form can specify a single year or multiple years, and either parent can revoke the agreement under certain conditions.
  • All children qualify for dependency exemptions. There is a misconception that any child can be claimed as a dependent. The IRS has specific criteria that must be met, including age, residency, and support requirements.
  • Form 8332 is complicated to fill out. Some people feel intimidated by the form, believing it to be overly complex. In reality, it is straightforward and requires only basic information about the child and the parents.
  • Only the custodial parent can sign Form 8332. It is often thought that only the custodial parent has the authority to sign this form. However, both parents must agree, and the non-custodial parent can also sign if the custodial parent allows it.
  • Form 8332 can be used for any tax benefit. Some mistakenly believe that this form applies to all tax benefits related to children. However, it specifically pertains to the dependency exemption and does not cover other tax credits or deductions.

Understanding these misconceptions can help parents navigate the complexities of tax benefits related to their children. Clarity about Form 8332 is essential for making informed decisions and maximizing potential tax advantages.

Key takeaways

The IRS 8332 form is an important document for parents who share custody of a child. It allows one parent to release their claim to the child’s tax exemption to the other parent. Here are some key takeaways to consider when filling out and using this form:

  • The form is titled "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent." It serves a specific purpose in tax filings.
  • Only the custodial parent, the one with whom the child lives for the greater part of the year, can complete and sign this form.
  • The non-custodial parent can claim the child as a dependent on their tax return if the custodial parent releases the exemption using this form.
  • The form must be attached to the non-custodial parent's tax return for the exemption to be valid.
  • It is important to specify the tax year for which the exemption is being released. This ensures clarity and avoids confusion in future filings.
  • If circumstances change, the custodial parent can revoke the release by submitting a new form to the non-custodial parent.
  • Both parents should keep copies of the completed form for their records. This can help in case of any disputes or questions from the IRS.
  • Filing this form can affect eligibility for certain tax credits, so it is wise to consult a tax professional if unsure about its implications.
  • Be mindful of deadlines. The form should be completed and submitted in a timely manner to avoid complications during tax season.