WHO GETS TO CLAIM THE CHILD ON HIS (OR HER) TAX RETURN?
A. If you’re divorced or legally separated under a decree of divorce or separate maintenance, then the parent who had custody of the child for more than half of the years can claim the tax exemption (and the new child tax credit). For all other situations, the one who provided more than half of the child’s support during the tax year can claim the exemption and the credit. These rules can be waived and the exemption can be transferred if the parents agree to do so in writing, either in a separation agreement or on Treasury Form 8332. The tax exemption amount is $2650 for 1997 and it is indexed to go up with inflation. The tax credit is worth $400 in 1998 and $500 in 1999 and future years. The credit is only available to the parent who can claim the dependency exemption. 18. Q. CAN THE OTHER PARENT’S PAYCHECK BE GARNISHED FOR CHILD SUPPORT? A. Yes, so long as there is a court order for child support; a separation agreement alone is not sufficient for garnishment or wage assignment. Once
