"H" is my step-daughter who lives SOLELY in my home with my husband (her father) and myself. "H" was 100% supported by me... not my husband... in 2014 because he was laid off for the entire year. "H" is the biological child of my husband and his exwife. "H" has zero contact with her bio-mom, zero visitation, and we do not receive any support from bio-mom for "H".
"E" is my husband's youngest child with his exwife. "E" lives with his mom, and visits us on the weekends.
In 2014, a family court judge ordered my husband to release his exemption claim to "H" if there was any child support debt for "E". No dollar amount was given. Even if DSER "batched" the weekly payment on Dec 30th, and it "appeared" to be an arrearage even for just one day, my husband was supposed to sign form 8332 and release "H's" exemption to his exwife. "Or else." This, by defintion, is a "conditional" and forced order.
In 2014, that same year, my husband had been laid off, and did not work, and did not contribute to my support of "H" who lives with us solely. His exwife does not work, ever, and does not pay any support for "H". I supported "H" all on my own. I also paid, when I could, the child support for "E". Unfortunately a very small arrerage happened, which my husband paid down as quickly as he could once he found work. However, on Dec 31st, there was still a small amount of child support that showed as "unpaid."
When we did our 2014, I claimed Injured Spouse, as the IRS informed me was my federal right, and I claimed "H" as she passed all tests of my qualifying child. My husband did not claim "H", but he did not sign a form 8332 either because he felt since "H" was my qualifying child, he did not have the right to release her claim. When I did my taxes, it was rejected due to someone else claiming "H" social security number. I contacted the IRS who instructed me to file via paper, and confirmed "H" as my qualifying child. I even faxed the IRS the forced court order against my husband, and the IRS said it was not lawful to force the release of a custodial parent's exemption under the condition of unpaid child support - Publication 504. So I did as the IRS instructed and completed my taxes, claiming Injured Spouse, and "H" as my qualifying child.
My husband's exwife just took my husband to court, lied under oath, stating that my husband claimed "H" when she was well aware he did not. And she asked the court to FORCE him to sign form 8332. The judge stated that despite "H" being my qualifying child, and not my husband's, he still must sign the 8332 form, "or else." So, under duress? my husband signed the form.
So what happens now? Will the IRS come after me and force me to amend my 2014 taxes even though "H" is clearly only my qualifying child, and not anyone else's? Will the IRS honor my husband's release of an exemption that he did not claim, that I did? Or will the IRS demand I sign the form 8332? Can the court do what they have done? Is that lawful? The IRS already stated once that "H" was my exemption and instructed the exwife to amend her taxes because "H" did not live with her and she did not provide any of "H's" support...