Decree Of Divorce: Case Study

Personal information
Taxpayer: Sarah Hamblin
Social Security Number: 123 43 4321
Spouse name: Not applicable (under the decree of Divorce, settled on March 1, 2015)
Home address: 1245 Rose Petal Drive, Madison, Wisconsin 53562
One child: 11 years old - Elizabeth Hamblin (under the decree of Divorce and as signed by Sarah in an agreement she cannot claim her child as her dependent)
The Presidential election campaign fund
This fund is contributed for presidential election campaign. A portion is also allocated for pediatric medical research. The cost of contribution amounts to $3 per tax payer if the payer is willing to pay such amount. In the case of the client, no refunds will be generated because checking or not checking the box for contribution implies no refund (“1040 Instructions,” 2015, p. 13)
Line 4 – Head of household (Filing status) Sarah can claim as head of household under the following
conditions: 1) she is unmarried under the decree of divorce and it was settled on March 1, 2015; 2) she has paid over half the cost of keeping up a home where she and her child have lived in. It was stated in the case that Sarah rents and pays a home separate from Kevin. Her child has also lived in her home in more than half of the year (given that the child has spent only 74 nights with her father, Kevin. The name of the child, Elizabeth Hamlin was written in line 4 for easy processing of the return as prescribed in the 1040 instructions (p.15).
Line 6c – Dependents (not reported, under the decree of divorce and as signed in an agreement)
The client may file her child as her qualifying dependent and may claim for a child tax credit under the following conditions albeit she has signed an agreement to release these claims; 1) Elizabeth is her daughter; 2) her child is below 19 years old at the end of 2015; 3) her child has no personal provisions; 4) the child as lived with her more than half of 2015; 5) the child was a U.S citizen (“1040 Instructions,” 2015, p.
18); and the child has her own social security number. Because Sarah has signed an agreement not to file her child as her dependent because her husband provides financial support (not a necessary condition) for her and her child, she cannot claim for child tax credit and cannot report her child as her dependent for the year 2015. By signing the separation agreement or as agreed upon by the decree of divorce, Sarah cannot claim her child as her dependent or may not claim child tax credits. However, the agreement can allow her to file as head of household, given that she pays and rents her house on her own, while living most of the time with her
child.
Children of divorced or separated parents There are some criteria to follow to consider that a child qualifies as a dependent and can claim child tax credit: 1) The parents are divorced, legally separated or has written a separation agreement. Additionally, the parents have also lived apart in the last 6 months (whether married or unmarried); 2) The child has received at least half support for his or her parents for the year 2015. Support from parent’s spouse is also treated as actual parent support; 3) The custody of the child belongs to one or both parents for at least half of the year 2015; and 4) Additional criteria applies (“1040 Instructions,” 2015, pp. 18-19) The other condition states as follows: a) The custodial parent has signed an agreement, such as Form 8332, that she won’t claim the child as dependent for the year 2015. The non-custodial parent can use this form, along with his return; 2) The pre-1985 decree of divorce or