Q: I have a tax return question. Last year, I signed IRS Form 8332 giving my then-husband the ability to claim our youngest son on his taxes. We were separated and in the midst of a divorce. After filing last year's return, our divorce was finalized.
In the divorce agreement, it was agreed that I would claim our youngest son on my taxes. We have two kids and they both live with me full time and occasionally visit their dad, who moved out of state. When preparing 2012 taxes, is there a form that needs to be fill out that cancels out the 8332 form that I signed last year?
A. Whether you need to do anything to revoke the release of the exemption for your child depends on how you filled out the original IRS Form 8332. Take a look at the IRS Form 8332 that you executed last year. If Part I of the form was completed, you agreed to release the exemption for your youngest child only for the tax year specified. Since the release was only for one year, you do not need to revoke the release. You can claim the exemption for the year(s) following the year specified on the release.
If Part II of the Form 8332 was completed, you agreed to release the exemption for the tax years specified in that part of the form, including future years. If that is the case, in order to revoke the release, you need to complete Part III of a new Form 8332 and provide it to the noncustodial parent. You must also file a copy of the Form 8332 revoking the release with your tax return, so that the IRS has a record of it.
The revocation will be effective for the tax year following the year in which you provide the revocation to the noncustodial parent. If you give the revocation to the noncustodial parent in 2013, it becomes effective for 2014.