2012 Child Tax Exemption: Caution Divorced Parents

The non-custodial parent must attach a signed (by custodial parent) Form 8832 to claim the child exemption on their tax return.  Tax Court says it will disallow the child exemption deduction if Form 8832 is not signed and attached to the return.  That said, there is an exception to this rule.  Both conditions below must apply:

  1. Divorce/Separation Agreement awards the child exemption to the non-custodial parent, if child support is current and paid timely, and
  2. This exception only applies to divorces that occurred prior to 2009.

Although this Tax Court Summary Opinion is not an official IRS stance, it does provide guidance to what you would face if your tax return was audited and this form is not attached and signed by the custodial parent.  So please, get Form 8832 signed by the custodial parent.