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From: miorelli@pwa-b.UUCP (Bob Miorelli)
Newsgroups: net.taxes
Subject: Re: Dependents - New Rules for 1985 Income tax
Message-ID: <188@pwa-b.UUCP>
Date: Thu, 16-Jan-86 11:18:42 EST
Article-I.D.: pwa-b.188
Posted: Thu Jan 16 11:18:42 1986
Date-Received: Sun, 19-Jan-86 04:21:28 EST
References: <428@faron.UUCP>
Organization: Pratt & Whitney Aircraft, E. Hartford, CT
Lines: 61

Actually the old vs. new rules were incompletely stated.  Here it is:

OLD RULES:
	If the divorce decree states that the non-custodial parent claims
	the dependent AND that parent provided at least $600 of child support
	then the non-custodial parent may claim.  Otherwise the custodial
	parent may claim anyway.

	If the divorce decree doesn't state who may claim, and the 
	non-custodial parent provided at least $1200 child support, then
	the non-custodial parent may claim UNLESS the custodial parent
	can prove that he/she provided more support.

	If the divorce decree doesn't state and the non-custodial parent
	provided LESS THAN $600 child support, he/she cannot claim.

	If the divorce decree doesn't state, and the non-custodial parent
	provide at least $600, but less than $1200 support, the parent
	with the greater support may claim the deduction.

NEW RULES:
	The custodial parent may claim the exemption UNLESS one of the
	following:
	   A pre-1985 divorce decree is in effect AND it states that
	   the non-custodial parent may claim the exemption AND the
	   non-custodial parent provide at least $600 in support  (the
	   old $600 dollar rule)
	or
	   The non-custodial parent specifically allows the non-custodial
	   parent to claim the exemption.  The non-custodial parent must
	   attach a written statement to his/her return signed by the
 	   custodial parent specifically allowing the transfer of the
	   dependent exemption.  (Form 8322 (i think)) may be used for this
	   purpose.

In addition, the child is considered  a dependent of BOTH parents for
claiming medical expenses.  The parent who paid for medical care may
claim that expense regardless of who is claiming the dependent.


Now, why all this??  More often than not, the child was being claimed twice.
Also, the custodial parent almost always provides the greater support.
Remember, support is anything and everything spent on the child's behalf.
Included is the fair rental value of the home including furnishings,
food, and utilities divided by the number of people living in the home,
plus anything spent directly on the child (clothing, haircuts, vacations,
medical care, child care, movies, etc., etc., etc.)
Almost always the custodial parent provides over 50% of the support.

Any other questions to me directly.

-->BoB Miorelli, Pratt & Whitney
.... also, H & R Block tax preparer and course instructor
philabs!pwa-b!miorelli


-- 

-->BoB Miorelli, Pratt & Whitney Aircraft
philabs!pwa-b!miorelli
utah-cs!utah-gr!pwa-b!miorelli