Monday, July 23, 2007

How to Protect Your Child Dependency Tax Deduction

Grant Griffiths, in his excellent Kansas Family Lawyer blog, brought up a timely subject that was also covered in detail in IRS web site .

The problem underlying the Tax Court case that was cited in the blogs was that the non-primary-custodial father had lost his copies of Form 8332 in a fire. There wouldn't have been a problem is he had kept extra copies in a safe deposit box or with family or friends. Another possible solution would be to get his ex-wife to sign another form. It's reasonable to assume that they probably weren't on the best of terms if he decided he would have more success by going to Tax Court. As it happened, he was wrong.

The message from all this is clear: Plan ahead. Keep important documents safe and make extra copies of them. It's a good idea to start working on taxes now so that you have time to get all the records you need.

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