Child of Divorced Parents - Filing Status

[Yardley CPA]

Preparing return for new client who has been divorced for several years.  23 year old, unmarried, full time student lives with the client year round and has done that since the divorce was finalized.  My client pays for more than half her support.  Divorce decree stipulates parents can alternate taking the dependent status.  Las year, 2019, my client claimed HOH, taking the child as her dependent.  Clients ex filed as single.  This year,  clients ex will take child as his dependent.  I did read through Pub 504 and believe my client can claim HOH this year and amend her 2018 return, which was originally filed as single, to claim HOH.  Can anyone confirm my understanding of this?  Form 8332 does not need to be filed, correct?

[FDNY]

To answer the second question I always get an 8332 signed.  I like to make sure custodian parent signs so no surprises.  These can be the most difficult clients, that’s why I usually let one of them go unless everyone is on a friendly basis.

[Lee B]

I ended up with the daughter of a client in this situation a few years ago. I did her return for 2 years, when I finally  realized this was outside my area of expertise,

so I sent her a letter before tax season explaining to her that I couldn't prepare her tax return any more.

[Yardley CPA]

27 minutes ago, FDNY said:

To answer the second question I always get an 8332 signed.  I like to make sure custodian parent signs so no surprises.  These can be the most difficult clients, that’s why I usually let one of them go unless everyone is on a friendly basis.

Thanks for the response, FDNY...I was under the impression since my client is the custodial parent claiming HOH she does not need to sign the 8332.  

[Catherine]

There is a provision in Drake (I dunno about ATX anymore) where you can list a dependent and check a box for "do not claim dependent: HOH qualifier only" so look for something like that.

[Yardley CPA]

4 minutes ago, Catherine said:

There is a provision in Drake (I dunno about ATX anymore) where you can list a dependent and check a box for "do not claim dependent: HOH qualifier only" so look for something like that.

In ATX, HOH Filing Status has the following:

I assume by completing the fields with the name and SSN of the qualifying child, the system does not claim the dependent, but qualifies for HOH.  

[Lion EA]

The custodial parent (IRS's definition, not the divorce court's) signs 8332 to give the dependency to the noncustodial parent, in your case every other year. The custodial parent is and remains HOH every year.

[TAXMAN]

Agree, and doesn't tax law trump divorce law?

[Lion EA]

Oh, yes!

[Pacun]

I am going to say the same thing as Lion EA.

My brother is the none custodial parent. 

He files single every single year and every other year he has a dependent. The mother, every year she is HOH and claims EIC credit every year. On her return, every other year she lists ONE dependent and gets EIC. Every other year she DOES NOT list any dependents and gets EIC because she has a salary of $25K. (I have to mention that $25K because someone might interpret that she gets EIC credit for her and not for the child).