Dependency Exemptions Clause Samples
A dependency exemptions clause defines circumstances under which a party is excused from fulfilling certain obligations due to reliance on third parties or external factors beyond their control. In practice, this clause applies when a party's performance is contingent on the timely delivery of goods, services, or information from another entity, and exempts them from liability if delays or failures occur because of these dependencies. Its core function is to allocate risk fairly by recognizing that not all delays or failures are within a party's direct control, thereby preventing unjust penalties for issues caused by third-party actions or omissions.
Dependency Exemptions a. During each eligible tax year, the Parties shall determine which of them would derive the greater economic benefit from the right to claim the Children as dependents on his and her state and federal income tax returns, and they shall allocate to that Party the dependency exemptions for the Children. The Party to whom the exemptions are allocated shall pay to the other Party, within sixty (60) days after filing the tax returns, half of the economic benefit derived from the exemptions. The benefit shall be determined by subtracting the tax due when calculated with the exemptions from the tax due without the exemptions. The Parties shall execute such tax forms as are necessary to permit the other Party to claim such exemptions. In the alternative, at the election of either Party with reasonable notice, the Parties shall each claim the Children as dependency exemptions in alternating years, beginning with the Party who did not make the election
b. If, prior to his/her emancipation, a Child has taxable income, the Parties shall confer with the Child about whether one of the Parties will declare the Child as an exemption (as opposed to the Child doing so), in order to avoid a situation where one of the Parties and the Child are taking inconsistent positions on their income tax returns.
Dependency Exemptions. In the absence of an agreement between the parties, the general rule is that the custodial parent gets the dependency exemptions. A noncustodial parent providing child support may be entitled to dependency exemptions if a decree of divorce or written separation agreement so provide. Does the Custodial Spouse want to waive the dependency exemption?
Dependency Exemptions. 1. Does the custodial spouse want to waive the dependency exemption?
Dependency Exemptions. For purposes of federal and state income taxation: