To access the Other Dependent Information Menu in Keystone Tax Solutions Pro, from the Main Menu of the tax return (Form 1040) select:
- Personal Information
- Dependents & Qualifying Children
- Other button
Form 2120 & Noncustodial Parent Dependent Selections – The custodial parent is the parent with whom the child lived the greatest number of nights during the year. If the nights are equal, the custodial parent has the higher AGI. If a dependent did not live with the taxpayer, the return should indicate why. Three options are available:
- Divorce decree – Check this box if the taxpayer is allowed to claim a child who didn’t live with them as a dependent due to the terms of a divorce decree. This assumes that “NC” is indicated in the child’s dependent record in the return for the number of months the child lived with the parent.
- Form 8332 – Release of Claim to Exemption by Custodial Parent – Check this box if the custodial parent has released the claim to the taxpayer, the noncustodial parent. (Note that while personal exemptions have been suspended for tax years 2018 through 2025 by the Tax Cuts & Jobs Act of 2017, this information is relevant to the Other Dependents Credit and certain other tax benefits.)
- Form 2120 – Multiple Support Declaration – Check this box to indicate that the taxpayer is claiming the child as a dependent due to a multiple support declaration. After exiting this menu, the Form 2120 Menu will display. Complete the form as follows:
- Select New and double-click the name of the child for whom the multiple support declaration applies.
- Indicate if the taxpayer has a signed statement from each “eligible person”, i.e., someone who could have claimed the child as a dependent but he or she paid less than half of the child’s support.
- In the “Eligible Persons for Multiple Support Declaration” menu, select New and enter the SSN, name, and address of the eligible person. When finished, select OK. Repeat for any other eligible persons.
- Repeat this process for any other dependents on the return subject to a multiple support declaration.
Form 8332 (Custodial Parent Release of Exemption) – The Tax Cuts & Jobs Act of 2017 suspended personal exemptions for tax years 2018 through 2025. Nonetheless, eligibility to claim an exemption continues to affect certain tax credits.
Form 8332 is used by the custodial parent to:
- Release a claim to exemption for a child so that the noncustodial parent can claim an exemption for the child and thus claim the child tax credit, the additional child tax credit, and/or the credit for other dependents;
- Revoke a previous release of claim to exemption for a child.
Complete Form 8332 as follows:
- In the Form 8332 – Custodial Parent Release of Exemption Menu select New.
- Enter the noncustodial parent’s name and SSN along with the child’s name
- Part I – Release Claim for Current Year – check this box if the taxpayer is releasing claim to the child for the current tax year, i.e., on this tax return.
- Part II – Release Claim for Future Years – in this field indicate the years in the future the taxpayer is releasing the claim to the exemption, either specific years or “ALL FUTURE YEARS”.
- Part III – Revoke Claim for Future Years – in this field indicate the years in the future the taxpayer is revoking a previous release, either specific years or “ALL FUTURE YEARS”.
Attach Dependent Birth Certificate PDFs
Attach Dependent Death Certificate PDFs
Attach Dependent Hospital Medical Record PDFs – Use these three lines to attach copies of these records for a dependent child who was born and died in the tax year and who did not have a SSN. These attachments are required if you have indicated in the dependent’s SSN field that they died during the tax year.
Note: This is information is intended to assist completion of Form 2120 and Form 8332, and indicating other dependent-related information, in Keystone Tax Solutions Pro. It is not intended as tax advice.
Additional Information: