Under new IRS rules, for divorces finalized in 2009 and after, the noncustodial parent must file IRS Form 8332 in order to claim exemptions for children of the marriage.  This situation occurs where the custodial parent agrees to allow the noncustodial parent to claim exemptions for some or all of the children.  IRS Form 8332 must be signed by the custodial parent and indicate the year or years for which the noncustodial parent is allowed to claim the children. 

For income tax purposes, the custodial parent is the parent with whom the children lived for the greater part of the year, regardless of the terms of the divorce decree or marital settlement agreement. 

For divorces finalized before 2008, the noncustodial parent could attach pages from the divorce decree or marital settlement instead of IRS Form 8332.  That option will still be available for filing the 2009 income tax return.  But if the divorce was finalized in 2009, IRS Form 8332 is required.

What does this mean?  If you were divorced in 2009, and your divorce decree or marital settlement agreement allows you to claim exemptions for some or all of the children, you’ll want to make sure that your former spouse has signed and given you IRS Form 8332 that spells out your right to claim the children.  If you and your former spouse have agreed to share the right to claim exemptions for your children in alternating years, you both should sign IRS Forms 8332 that spell it out.