Tax Dependency Exemption definition
Tax Dependency Exemption. The Husband shall be entitled to claim the minor children as a dependent exemption on his Federal Income Tax return during even years. The Wife shall be entitled to claim the minor children as a dependent exemption on his Federal Income Tax return during odd years. This might seem burdensome to the payor spouse, but the reality is that transparency always saves money in the long run. We recommend talking to your tax person to see which split of deductions is most beneficial for all involved. Commonly, we split them between the parties. This is new IRS requirement! The parties shall execute IRS Form 8332 as required by the Internal Revenue Service to allow the other party to claim this exemption.