Guardian of grandchildren for limited time; claiming them as dependents?
Daughter and husband seperated. Daughter living with me for two monts and now going to the Army. The father is in the Navy. Both parents have agreed to give me power of attorney for children for medical, education, etc. until daughter is finished with boot camp and training and will be able to provide for children. I will be providing all financial care and day care costs which will exceed $1600/month. I want to claim both children as dependents on tax for 2005 but don't know what form to use to ensure that the father will not change his mind when tax time comes around and try to claim children as dependents. I will not be getting any finacial support. However, the father will be alloting $400 a month to my daughers account to show that he has paid child support as he is afraid I will try and take the children away from him.
1 Answer from Attorneys
Re: Guardian of grandchildren for limited time; claiming them as dependents?
It is good that you are thinking about these issues now as these situations often result in the IRS denying the exemptions, deductions and credits related to the child for both the parent and grandparent. The IRS is then opens an audit for both the parent and grandparent, which can be harmful to the parent-grandparent relationship. I help taxpayers with these types of cases all the time.
There is no standard form to use in these types of cases, but you should get something in writing if at all possible. An experienced tax attorney and/or a CPA can help you determine the factors to see if you qualify for the exemption, deductions, and credits for the child and draft an appropriate letter for you. So you should contact an attorney and/or CPA.