Its Almost Time for Taxes - Don't Forget your Dependency Exemption!

Tax time is once again around the corner and for those of you who were awarded the dependency exemption in your divorce you will be entitled to an exemption of $3,500 for a qualifying child (this will increase to $3,650 in 2009). The parent who received the exemption is not only entitled to this exemption but is also potentially entitled to other exemptions/credits directly tied to the dependency exemption. For example, the parent who claims the dependency exemption is also entitled to the Child Tax Credit. Check with your attorney or tax preparer regarding other potential exemptions/credits for which you may be eligible if you are entitled to the dependency exemption.

Also, don't forget that if your Decree was entered before 1984 you must attach the Form 8332 to claim the exemption if you are not the custodial parent. If your Decree was entered between 1984 and 2008 you can attach certain pages of your Decree instead of Form 8332. If your Decree is entered after 2008 you will once again be required to attach Form 8332. It would be best to contact either your tax preparer or your attorney to determine what documents will be necessary to attach this year and in the future.

New Child Support Guidelines are in the Works!!!

Sounds like the Supreme Court of Iowa is hard at work reviewing massive revisions to the current Child Support Guidelines. We will not know the final product until July 2009. Check back for updates as the Guidelines prepare to undergo vast changes.