New Rules for 2008 Tax Year

[gemini3]

I just read online that there are new rules regarding children of divorced or separated parents for the 2008 Tax Year.  The biggest change that I can see is that you are no longer allowed to attach copies of your custody order.  Instead, any time a non-custodial parent is going to claim a child, a Form 8332 must be signed by the custodial parent and attached to the return.

You can read all of the changes here:  http://www.irs.gov/pub/irs-pdf/p501.pdf (http://www.irs.gov/pub/irs-pdf/p501.pdf)

[lucky]

That's not quite accurate, under certain circumstances they can still attach certain pages, but the IRS has made it a much narrower population of divorce/custody/child support decrees that it applies to.

People need to read that section of the instructions very, very carefully.

[gemini3]

Oops, you're right.  It's if the agreement was made after 2008, you must attach the form 8332.

Thanks!

[Waylon]

Forwarded to me for general interest at tax time:

This could go in the thread for the 'tax rules for 2008', although this is not a new tax rule.
I have been claiming this for some time. in our 50/50 rotating situation we are both require to maintain a life insurance policy.

My tax  preparer didn't believe me on this one, until I showed him the supporting literature.

For those required by their CO to maintain a life insurance policy with the other parent as the beneficiary for the policy (since the children cannot claim the benefits of the policy until 18 years of age). Payments made to maintain such a policy can be deducted as alimony on your taxes.

So...if you have been paying for a life insurance policy and not claiming this as alimony, you also have the option of filing a correction for preceding years taxes. However, this amount may be trivial.

[MixedBag]

makes you scratch your head.

all three of my kids since Divorce#2 have been the sole beneficiaries on my policies and nothing has ever been said.

And then in my WILL I cover who controls their access.

nothing has been court ordered in my case though.