Form 8332 — Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent
Form 8332 is used by a custodial parent to release their claim to the dependency exemption (and Child Tax Credit) for a child to the noncustodial parent. The noncustodial parent must attach Form 8332 to their tax return to claim the child as a dependent. For tax professionals, Form 8332 is critical in divorce situations — the allocation of the dependency exemption and Child Tax Credit between divorced parents must be handled correctly to avoid both parents claiming the same child.
Key Rules and Authority
| Rule | Detail |
|---|---|
| Custodial Parent | Parent with whom child lived more nights |
| CTC Transfer | Follows Form 8332 — goes to noncustodial parent |
| AOTC/CDCC | Cannot be transferred — stays with custodial parent |
| Multi-Year Release | Can cover specific future years |
| Revocation | Effective for years after revocation is filed |
| Court Orders | Cannot substitute for Form 8332 (post-1984 divorces) |
What Form 8332 Transfers — and What It Doesn't
When the custodial parent signs Form 8332, they release the dependency exemption and the Child Tax Credit (CTC) to the noncustodial parent. However, Form 8332 does not transfer: (1) the Earned Income Credit (EIC) — always goes to the custodial parent; (2) the Child and Dependent Care Credit (Form 2441) — always goes to the custodial parent; (3) the American Opportunity Tax Credit (AOTC) — follows the dependency exemption but requires the child to be a dependent; and (4) head of household filing status — always goes to the custodial parent. This creates a situation where the noncustodial parent claims the CTC but the custodial parent claims the EIC and head of household status.
Frequently Asked Questions
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