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For a discussion of how to prove you may claim the dependent, the definition of support, what expenses qualify for support, etc. please refer to Dependents & EIC & Filing Status ~ Protecting YOUR Position.
In general, the custodial parent is treated as providing over one-half of the child's support if the child is in the custody of one or both of the parents for more than one-half of the calendar year, and more than one-half of the child's total support for the calendar year is provided by either or both parents. The custodial parent is the parent who has physical custody for the greater portion of the calendar year. The general rule does not apply if the custodial parent releases her claim to the exemption, over one-half of the support is treated as received from a taxpayer under a multiple support agreement, or a qualified pre-1985 instrument is in effect. A custodial parent uses Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents (or a similar statement) to release the exemption to the non-custodial parent. The release may be for the current tax year, for specific future years, or for all future years. The non-custodial parent attaches the release to his tax return for each year in which he claims the dependency exemption. The form contains no cancellation date. The IRS has ruled that the releasing party may not unilaterally revoke her declaration. If the custodial parent does not provide the written release, the non-custodial parent can have great difficulty in convincing the IRS that he is entitled to the exemption. For example, in Neal v. Commissioner, T.C. Memo. 1999-97, the Tax Court ruled that the taxpayer could not claim the child dependency exemption even though he had a state court order specifying that he was entitled to the exemption.In lieu of a signed Form 8332, if a post-1984 divorce decree or separation agreement unconditionally states that the non-custodial parent may claim the child as a dependent, that parent may attach to his return copies of the following: (1) the cover page of the agreement with the custodial parent's social security number written on it; (2) the page stating that the non-custodial parent may claim the exemption for the child; and (3), the signature page bearing the non-custodial parent's signature and the date of the agreement. A divorced parent exercising visitation rights can treat the cost of feeding, entertaining, and transporting his children as support. To decide who has custody, section 1.152-4(b), Income Tax Regs., provides that custody "will be determined by the terms of the most recent decree of divorce" if there is one in effect. Section 1.152-4(b), Income Tax Regs., further provides that, if a divorce decree or written separation agreement does not establish who has custody of a child, or in the event of so-called split custody, custody will be "deemed to be with the parent who, as between both parents, has the physical custody of the child for the greater portion of the calendar year." Since the divorce decree does not provide for the custody of Adam and Amanda, and provides split custody for Nathan, and all three children resided exclusively with Ms. Mosley during the years in question, Ms. Mosley is considered the custodial parent under section 152(e). Petitioner, as the noncustodial parent, is allowed to claim a child as a dependent only if one of three statutory exceptions are met. Under these exceptions, the noncustodial parent is treated as providing over half of a child's support and, therefore, entitled to the dependency exemption if: (1) (a) The custodial parent signs a written declaration that such custodial parent will not claim such child as a dependent, and (b) the noncustodial parent attaches such written declaration to the noncustodial parent's return for the taxable year, section 152(e)(2); or (2) a multiple support agreement pursuant to section 152(c) determines support, section 152(e)(3); or (3) (a) a qualified pre-1985 instrument provides that the noncustodial parent shall be entitled to any deduction allowable under section 151 for such child, and (b) the noncustodial parent provides at least $600 for the support of such child during the calendar year, section 152(e)(4)." Source:
Solutions are dependent upon facts & circumstances, law and the objectives. These elements vary from one time to another, from one circumstance to another and from from person or entity to another
Engagement Status Letter ~ WARNING!
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