Parties involved in Massachusetts divorce mediation may wish to consider how to allocate the child dependency exemption to maximize the overall benefit to the family and take the greatest tax benefit possible.
The IRS released regulations in 2008 suggesting that state courts may not allocate child dependency exemptions, verifying that a state court may not force a custodial parent to give up a federal right. However a custodial parent may voluntarily consent to allocate the child dependency exemption to the other parent. In that case, IRS Form 8332 may be used to release the exemption. Many parents agree to review how to allocate the tax dependency exemption annually, by calculating the potential benefit on their own, or in consultation with a financial advisor or accountant. Working together often puts more money in the parties’ pockets.
If you have questions about child dependency tax exemptions in Massachusetts, call our family law and divorce mediators at Parker Mediation for a consultation.
The Worcester, MA divorce lawyers and family mediators at Parker Mediation serve the Central Massachusetts and Boston metro-west communities such as Clinton, Framingham, Fitchburg, Leominster, Marlborough, Millbury, Shrewsbury, Sutton, Westborough and Worcester, Massachusetts.
The Cape Cod divorce lawyer and family mediators at Parker Mediation serve the local communities of Barnstable, Chatham, Falmouth, Hyannis, Mashpee, Provincetown and the entire Cape and the Islands.