Tag Archive for Form 8332

Tax Challenges For Divorced Parents – Why?

Annette Nellen

We get used to certain rules in the tax system and then think they HAVE to be there. But, often, that is not the case. I think the rules related to divorce are good examples.

Alimony is deductible by the payer and taxable to the recipient. This violates the “fruit of the tree” doctrine from the famous 1930 US Supreme Court case, Lucas v Earl.

Read More

Written by | Posted in Family Tax • Income Tax • Tax Law

Exemptions On The Federal Tax Return

1040 tapeTwo types of exemptions are allowed – personal and dependents. There are special situations for a noncustodial parent of divorced or separated parents to claim a dependent and situations where several persons may contribute to the support of another person.

Personal Exemptions

These are for the taxpayer(s) filing the return – one for single, head of household, and married filing separate, and two for married filing joint. Each personal exemption is $3,900 for 2013 ($3,950 for 2014).

Dependents Exemptions

Tax payers are allowed one exemption for each dependent who must at some time during the year, qualify as a:

(a) Citizen of the U.S.

(b) U.S. national who has permanent allegiance to the U.S.-one born in American Samoa or the Northern Mariana Islands who has not become a naturalized American citizen. Read More

Written by | Posted in Federal • Income Tax • Tax Deductions