In Rhode Island, who is entitled to claim the minor child or children as Dependency Exemptions for federal tax purposes?
If there is no indication in a Final Decree of Divorce or Final Judgment Pending Decision or Property Settlement Agreement as to who is entitled to claim the children as Dependency Exemptions, then automatically the parent with Physical Placement/Physical Custody of the minor children is automatically entitled to claim the child or children for federal tax purposes.
This article is for informational purposes only and should not be a substitute for seeking advice from a Rhode Island divorce attorney, RI family attorney, or child custody attorney.
If there is a Property Settlement, Pending Decision, Order, or Final Judgment that addresses the issue, then the parties must follow the order or contract as to which party claims the child as a release. If they are not satisfied with the order or the contract, they may be able to modify it. If a person does not comply with the Property Settlement Agreement or Court Decree, there may be serious penalties and repercussions in RI Family Court.
However, the IRS does not care about Rhode Island Family Court Orders, Decrees and Estate Settlements! As far as the IRS is concerned, the custodial parent has the right to claim the child regardless of state decrees and court orders and directions to the contrary in a Property Settlement Agreement, unless Form 8332 is executed.
The IRS has developed a very bright line, a clear and concise rule regarding who is entitled to claim a child as an exemption for federal income tax purposes. Treasury decision 9408 provides that the parent with physical custody may claim the children as dependents, regardless of the terms and conditions of any Estate Settlement Agreement, order, or final judgment, unless the noncustodial parent files Form 8332 signed by the custodial parent.
Pursuant to Treasury Decision 9408: The parent with physical placement of a child or children is entitled to claim the exemption(s) unless the noncustodial parent attaches Form 8332 to their federal income tax form signed by the custodial parent for the particular tax year in question. The IRS does not care at all what is stated in any state court settlement agreement, contract, order or judgment!
The IRS has absolutely no interest in getting bogged down in a messy, contentious state dispute in Family Court or a divorce between feuding parents. The IRS only cares about raising money. The IRS has no interest in getting involved in a dispute between two ex-spouses or ex-boyfriends and girlfriends.
IRS Bright Line rules and regulations should not encourage parents to ignore or refuse to comply with Property Settlement Agreements or RI State Court decrees! There can be serious repercussions for not following orders and negotiated contractual agreements. If a person is dissatisfied with an order, they should seek to modify it, if they qualify for a modification, rather than not follow it.
In some cases, a parent can file a lawsuit in Rhode Island family court seeking to set aside an order or contract that allows the noncustodial parent to claim the deduction when the noncustodial parent owes child support. It makes little to no sense that a person could claim a waiver when he is not paying court-ordered child support. However, a parent should file a lawsuit in court rather than take the law into their own hands.
In RI, if a parent wrongfully claims a child in contempt or violation of a court order, estate settlement agreement, pending final judgment or final judgment of divorce, the aggrieved parent may seek relief in Rhode Island Family Court. This relief could be a motion seeking damages or for contempt or other relief. The Rhode Island Family Court may order the parent who wrongfully claimed the exemption to file an amended tax form. The Family Court may order the parent who violated the order to pay damages or Attorneys’ fees to the aggrieved person. The Family Court could order other measures of reparation.
Therefore, it is prudent for a non-custodial parent who has an order or contract allowing use of the dependency exemption for a particular year to request that the custodial parent sign IRS Form 8332. If the custodial parent refuses to sign the 8332 form, the noncustodial parent may file a motion in Rhode Island Family Court requesting that the custodial parent be ordered to sign the form or for contempt, attorneys’ fees, or other relief.
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The Rhode Island Supreme Court licenses all attorneys and attorneys in the general practice of law, but does not license or certify any attorney/attorney as an expert or specialist in any field of practice.