Split Exemption: Claiming One Child on Two Tax Returns — The Legal Way

IRS rules allow for divorced parents to split a child's exemption

Splitting an exemption is not illegal if you follow the proper rules. Learn how here.

 

 

Sometimes when I’m working with a divorced couple, it seems that the most beneficial way to prepare the tax return is to split the exemption for their child. When I say that, they always tell me, “But I heard that was against the law!” No—that’s not exactly true. But let me tell you, there is a right way and a wrong way to do it. If you follow the rules and do it correctly, it’s not only legal, it’s the right thing to do. Warning: if you don’t follow the rules, you could be breaking the law. I give a lot of advice to do-it-yourselfers, but if you’re planning to split an exemption, I recommend you go to a professional for it. (And if she tells you it can’t be done—hire somebody who knows what she’s talking about.)

 

With most divorced couples (I’m including here couples who were never married but have split apart and have lived apart for at least 6 months of the past tax year), one parent (usually the mother) has custody and the other parent (usually the father) has visitation rights. A lot of couples say that they have “joint” custody – for example, the kids stay with the dad every Wednesday night and every other weekend and with the mom the rest of the time. If you count the days, under IRS rules, the mother wins on the custody status. According to the IRS, wherever the child spends the most nights is where the child lives—if you’ve got one of those every other weekend and every Wednesday night agreements, the IRS doesn’t count that as being equal.

 

In my example, I’m saying the child lives with the mother. In IRS lingo, the mother in this example is the “custodial” parent and the father is the “non-custodial” parent.

 

In this case, the mom has all the power—she’s the custodial parent. The mom can claim all the benefits of having a child on the tax return. Those benefits include:

  • Head of Household filing status-a lower tax rate
  • Childcare tax credit-credit for money you spend on daycare
  • Childcare exclusion-so you don’t get taxed if your company pays for daycare
  • Earned Income Credit-this can be worth up to $3,094 for one child
  • Exemption for the child-a deduction of $3,600 off your income
  • Child Tax Credit-worth up to $1,000

 

When tax professionals tell you that you can’t split exemptions, what they’re reading is the section of Pub. 17 (that’s like our Bible for tax stuff) that says these things always go to the same person. What they’re not reading is page 31—the part that tells you about the special rules for divorced or separated parents. Under the special rules section, it says that the mom (our custodial parent) can release the exemption for the child to the father (the non-custodial parent). This lets him claim the exemption and the child tax credit on his return, while the mom keeps the head of household status, the dependent care credit, and the EIC on her return.

 

Why would anyone want to do this? Lots of reasons! Number one, of course, is to maximize the amount of money you get back from the government. A lot of times, after a divorce, the mom doesn’t have a very high taxable income. Remember, child support isn’t taxable. The dad has lost a lot of his deductions so his tax bill could be pretty high. He’d probably never qualify for an earned income credit anyway, but the $1000 child tax credit would really help him out. If the mom’s taxable income is really low, she wouldn’t even qualify for the $1000 child tax credit. In some cases she could give it away without it hurting her at all. Or maybe the father is behind on child support, she could negotiate: if he catches up on the child support by December 31st, she’ll sign the form to allow the father to claim the child’s exemption. Remember, when claiming the exemption for a child, the custodial parent has all the power. If the dad claims the child without permission, the mom can just file her own return fully claiming the child and sending the dad’s return to the IRS audit division. You don’t want that to happen.

 

Splitting an exemption isn’t the best choice for everybody. You have to look at both returns and see if it’s going to work. It also helps to be on good terms with the ex—this certainly doesn’t work well with people who are fighting.

 

There are a lot of other rules that I haven’t even touched. (That Pub. 17 book is 295 pages long!) But if you are divorced or separated, you need to know that splitting an exemption might be an option for you to use on your income tax return.

 

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Here are some links that might help:

EIC questions of any kind:  EITC Assistant

 

How to find free tax preparers:  Free Tax Help

 

How to find your local IRS office:  Find an IRS Office

 

378 thoughts on “Split Exemption: Claiming One Child on Two Tax Returns — The Legal Way

  1. Thanks for such a great site!! I hope you may be able to help me out! I have a child and have never been married. When we split up we made a verbal agreement between us, (no custody hearing) that we would split custody 50/50 and claim the child every other year between us!! My question is, that the mom gets insurance thru our state exchange and gets a subsidy for the child! Now with the new ACA I’m not sure I can claim her as a dependent since the child was enrolled through the mothers insurance!?

  2. Hello,

    My ex and I were never married. She has our son on her medicaid and she is on governmental assistance. However, since I’ve been keeping a log, I’ve had him for 60 % of the overnight stays. I have a family member watch our son while I go to work on my scheduled days and also on days she worked. Aside from the free healthcare he gets, I pay for the majority of his needs, Diapers, Clothes, Toys, Day Care expenses, etc. She does not want to negotiate any of his tax credit and feels if she is entitled to it because she NEEDS it. She only worked 15-20 hours a week part-time at minimum wage last year. She no longer works and her mother and her moved 75 miles away from me.

    The twist is this. I have a petition for paternity case pending. She had defaulted on responding to it and the final hearing would be coming soon. Is the fact that I’m not his ‘legal’ father yet detrimental to me claiming him since I had him most of the time?

    Thank you so much for your answer!

  3. I have 50/50 joint custody of my children and have them a lot more than court ordered in our divorce agreements I tried to talk to my ex about letting me claim my son and she told me I have no right to because she pays for insurance which was in out divorce agreement and she pays for daycare which I never agreed to do so what should or how can I go about having the right to claim my son I have them about 75% of the time I’m just stumped. She threatened me and said if I want to claim my son I can pay half of his daycare or pay all his insurance

  4. Hi Melissa,
    No. The daycare credit can only go on the tax return of the person claiming the child as a dependent (or, if you were split up, the person claiming the head of household designation on a split return.)
    If you and your boyfriend live together and he’s claiming the exemption, have him claim the child care credit also.

  5. my boyfriend & I have a child together, he claims her on his taxes, but I pay for daycare..can I claim the daycare expense on my taxes if he claims her as a dependant?

  6. Hi, I came across this site and I am really glad I did. I was hoping you could help me. Me and my ex husband have a very good relationship. I want to allow him to claim the kids this year as head of household to get the EIC and all other deductions possible so it can help him catch up back child support. I of course will be filing single and not claiming the children at all since I really didn’t work much this year anyways. (I was a full time student) In previous posts I noticed that if I give him a signed 8332 form they will probably not give him the EIC. I’m fine with not signing it, I trust he wont claim them next year. My issue is I know that in order for him to get the EIC he must have had them living with him for half the year, unfortunately they technically haven’t. They have lived with him for a good amount of time though. I don’t mind if he says that they have lived with him for half the year. I do however receive child care assistance that states otherwise. I just want to make sure we wont get in any trouble if I just let him claim everything and I claim nothing. I’m not trying to take advantage just make sure he gets the best return possible because ultimately it benefits my kids and helps my ex get ahead a little more instead of struggling so much with his bills and child support. Thanks in advance.

  7. Hello!! this is just what I was looking for..

    So– 2013 Childs father and I went to court and we did a 50/50 split.. I also some how agreed to let him claim him on his taxes on EVEN years. ( 2014) I was never ordered to sign the 8332 Form, however I am also not trying to be in contempt of court. LOL

    Childs father AGI: $37k
    Myself: 20k & around $16k after deductions.

    i saw this split exemption topic and wondered if this would benefit me. I am self employed full time college student & while doing my 2014 taxes, it seems I will actually OWE almost $2000 if I do not claim my son as my dependent.

    I want to see if I am understanding this correctly.

    Since my Childs father has a HIGHER AGI than I he would claim my son as a dependent and receive the exemption and the child tax credit.
    and
    If we did this “Split exemption” I my self, would claim Head of House hold as and the EIC. Is this correct??

    I am super paranoid and he is not really willing to talk to me about this kind of stuff. I am in the midst of buying a house and I was hoping to have something on my return to use for my Down payment, but as it stands with not claiming him at all— I owe the IRS.

    Thank you,
    Impoverished College Momma

  8. Hi Jennifer,
    You’ve got a perfect case for the split exemption. You and your husband should claim the dependency exemptions for both children and let the ex claim the head of household status for both children. It maximizes her EIC return and lets your husband claim the college tax credit. It’s a win/win for everyone.

  9. Hi Cathy,
    You were divorced in 2013, your ex claimed the kids and he has a legal right to claim the exemptions. You are on disability and have no taxable income. He makes a lot of money, so EIC is not an issue here.

    You’re not married anymore so he has no obligation to split the refund with you. If you claim the kids–which is in violation of your divorce decree- you get nothing anyway. So tell me, what do you want?

    You don’t really have to tell me what you want. You want him to man up and be a responsible parent. I get that. It ain’t gonna happen (that’s why you divorced him, remember? Or something along those lines, right?)

    I’m sorry, but redoing the tax returns aren’t going to help you.

  10. Hi! I was divorced Feb 2013. Judge said that ex could claim kids until 18. I am disabled & do not file taxes. He & I were to do our 2013 taxes together but he did them without me. He claimed the kids but has not given me my half. I actually requested all of the tax credit because the way the custody worked in 2013 was he saw kids jan 9th(wed) for 3 hrs. MAYBE 4 times that WHOLE YEAR WITH NO SLEEP OVERS until they slept over DEC 22 & 23, 2013. Spent 6 hrs Christmas day & that was that was it. BUT that was the childrens choice but he made no attempts to go out of his way to see his children @ extracurricular or school events either. He also drove past our family home daily to/from work, he lived with his mistress less then 5 miles from his kids, & never called or stopped! So with that said, I felt that I deserved the entire child credit refund! I wanted our CAP to ask IRS to figure out the formula & thats why he filled without me. Plus the fact his income has increased drastically & has not reported it to WVBCSE also has alot to do with it. He also has not paid his 70% medical for kids medical bills. States he doesn’t get them. Funny thing is, neither do I coz of HIPPA! I just get the COLLECTION calls & partial bills on what is owed caused I’m the parent who takes them & he carries the insurance. How do u go back & modify a IRS tax form? Is it the CPA’S fault? Did they need my signature to get the child (s) exemptions? Do I deserve all coz of the fact kids chose not to be with their dad @ his girlfriends home either hours or overnights in 2012? He’s getting married to her & I don’t want to look like the ex who is crazy. Been trying to get him to take care of this for months but my health & my mother’s health has been poor since our move 8months ago. PLuis our children have not adapted well to their many new situations including divorce, his fiancee soon to be step mother & life as teenagers. Any advice would be wonderful.Thank you & I look foward to hearing from you soon.

  11. I have a question that I have not been able to discern from reading the posts above. My husband and his ex wife are currently back in court to settle a dispute about dependency, college expenses, and child support. To be diplomatic his ex is trying to get as much money as she can from this arrangement. The issue at hand:
    1. Daughter is 19, and a sophomore in college, Son is 16.
    2. They have always split custody 50/50.
    3. The original divorce decree gave the daughter as a dependent to the mother and the son to the father.
    4. Dad makes more that mom, her tax returns show an average income of $5,200/yr., dad pays her child support of $587/ month.
    5. Dad is paying college tuition for daughter, but because he cannot claim her as a dependent he does not have the relief of receiving education credits, nor can he claim her education expenses on our tax return.
    6. We have asked the court to award dad her as a dependent while also retaining his son.
    7. Legally they are both our dependents via IRS rules, They live with us 50% of the time, and we support them here in addition to paying 587/mo in child support, and dad makes more money than mom does. We would save more than she does on her taxes by having them, but the court ordered different.

    The judge is concerned with mom losing head of household status credit, etc.
    Additionally she is underemployed by her own choosing and she has virtually no expenses because she lives with her boyfriend. Her subpoenaed bank records show no house/rent, utility, auto, payments being made by her.

    Can we propose to take the daughter as a split exemption so the judge can feel good about her not losing the head of household status? and if so how do we do that?
    thanks so much as this split exemption option is very confusing,
    Jennifer

  12. Hey Jan. I’m actually the parent. My son has gone into the voluntary foster program temporarily. I am still legal guardian and he just lives with the foster family for now while I make sure things are straightened out at home and living situations. court isn’t involved and since he wasn’t taken from me I put him in this program and I can have him back at any time. Just rough times and I wanted to make sure he is in a secure place (son is autistic its why the voluntary program is open to me) Circumstances with work and finance I may loose my living situation and don’t want him to have to go though those rough times. So in a situation like this, (doing this research for me and the family caring for him) is there a way we both can claim him for part of the year or do they as temporary givers claim him or do I claim him. All this is very confusing to me and thank you for your assistance. Its very much appreciated.

  13. Melissa,
    It sounds to me like you will have to pay your ex $200 a month in expenses for him to travel to see your child. You need to talk to your lawyer about that. Not me.

  14. Hi Melissa,
    So your divorce decree has you alternate exemptions–that means claiming the exemption and the child tax credit. But you, as the custodial parent will always have the right to claim head of household filing status and EIC (if your income qualifies.)

    You won’t be able to take away the right to claim the exemption without going to court and having that right removed from your ex. As long as he’s being a good parent, why would you want to?

    If he’s not being a good parent, that’s different. Then go to court.

  15. Hi Tina,
    You always claim your son but now your ex claimed him and you need to claim your daughter instead? You wanted to know if that would be okay. Yes. I have some couples who routinely switch which child to claim. It’s not a problem.

  16. Hi,
    I recently went to court to get divorced. I just received the final decree dissolution and they want me to sign it if i agree. I requested to move out of the state with my daughter and one of all my ex conditions for me able to move was to alternate income tax returns. One of the questions is it going to affect me? As I saw in the papers he also states that he is going to be given $200 per month in travel expenses in child support. So another question can i fight back my right for income tax returns as he is going to report $200 expenses in child support a month?
    Thankyou

  17. Hi,
    I recently went to court to get divorced and I requested to get permission to move out of state with my daughter. My ex proposed me that if he let us go I needed to let him alternate with the income, because he was going to spend money to go see our daughter. Now I have a question I heard that my lawyer that we could alternate with tax deductions and I would always have the right of earned income. What does that mean? Does this really affect with tax returns? another question could I later on take away the right of alternating? Thankyou

  18. Hi Ely,
    When you’ve got a situation like that–wow. Here’s the thing: legally–who had the child more days? But reality–who should be claiming?

    1. If you and the parent are working together for the good of the child–then you can discuss between the two of you what to do. Whoever claims the child will put 7 months on the tax return instead of 6.

    2. If you and the parent are not working together–you’re probably going to lose. The IRS will defer to the parent.

    Will you automatically lose? No–so if this is a fight, you may win–but it won’t be easy. You’ll have to prove you had at least one more day than the parent AND that you were a legally court appointed foster parent.

  19. Hi Faheemah,
    Sorry but I can’t back you up here. We have laws and rules whether we agree with them or not. As my mother would say, “If you see your friend jump off a cliff would you jump too?” So your ex isn’t obeying the rules so you’re just going to disregard a binding legal contract and IRS law too? That doesn’t fly with me.

    That doesn’t mean I don’t feel for your situation. But handle it in an adult and responsible manner. Either go to your ex and say, “Hey, here’s the situation, we need to claim our son this year, let’s work something out…..” Or, if that’s not an option, then go to the court and say, “Hey, we need to change how we claim the exemptions.”

    But saying, “my ex broke the rules so I’m going to break the rules too….” that’s really not the lesson you want to teach your child now is it?

  20. Hi Cary,
    First, I think you’re smart not to go to your ex about this given his history. Your safety is the most important thing here.

    Now, about your proof. First, you don’t need to send any proof until the IRS asks for it. But they will so you’re smart to get your ducks in a row now.

    I think the school document is the absolute best supporting document you can get, so breathe easy.

    Oh–about your doctor. You don’t need your doctor to write a letter–get a copy of your child’s immunization record. I’d bet any money that it has your address on it. Or–get a copy of one of your doctor’s bills. Or ask for a statement showing what you’ve paid. Any of those would document that you’re taking your child to the doctor.

    But like I said, the school record is your best documentation anyway.

    Good luck. (Not that you need it, you’re doing all the right things anyway!)

  21. Hello! My ex husband claimed our son with EIC for 2013. He does claim him as a dependent, but he lives with me. Instead of talking to him about it (which would be a nightmare), I am reporting it through my tax preparer and letting the IRS deal with him. I have a letter from the school saying he lives with me and goes the that school, but i really dont have anything else. My tax preparer said that our Dr could write a letter , but he said he wouldn’t since it’s not his responsibility. What else can we use as proof? and also what do you think he will be charged with and how long does something like this take? Is there any way he could fight me and win? I am scared of him and his ways, we divorced due to domestic violence and he is a natural in manipulating matters!

  22. My ex husband and I divorced in 2008. Divorce decree states ex husband can claim our son for tax exemption purposes every odd year. I was warded custody. Our son see’s his father once a year and doesn’t provide any where near half of our sons financial expenses. My husband has provided for my son for the last 7 years and currently. He and I both feel that because my ex husband doesn’t meet any of the IRS guide lines (other than the Judge saying he can in writing), and we have come into a financial heart-ship (due to some financial responsibilities for my son with no help from his biological dad); my husband should claim my son on his tax return for ALL available credits and exemptions. Will we run into an unfix-able situation. I will deal with the courts if my ex-husband pursues. I’m thinking if I am found in contempt, so will my ex because he does do anything the final judgement requires of him. If he doesn’t comply with the court order, why should I ( in a perfect world).

  23. Hi Jan. I know you have posted a few things on here about Foster Care and the different tax credits and I have tried to read all of them but might of missed this. If a child lives with their parent from Jan 1st – July 1st of a year then goes and stays with a foster parent from July 1st till the following Jan. Who would do what claiming come the new tax season. The child is going into volunteer foster care.

  24. Hi Felipe,
    Yes, you qualify legally to do this. The big requirement here is that you don’t live together and it sounds to me like you don’t. You don’t require a court order or anything like that.

  25. My sons mother and I have always been separated in good terms, we share custody with her being the primary care, but i give her about 20% of my income to help with any expenses. shes always claimed him because we were scared that by doing this we would be audited since we do this all under a gentlemans agreement and not under court order. My question is, would we qualify to do this legally if both of us agreed on it?

  26. Hi Susan B.,
    Your husband’s ex’s CPA is reading page 31 of IRS publication 17. If he would read a little further to page 32, column 1, he would see the special rules regarding the children of divorced or separated parents who live apart.

    Here’s a link to the IRS pub: http://www.irs.gov/pub/irs-pdf/p17.pdf

    I’m right. Not to sound snobby, but I’m really good at this stuff.

  27. My ex husband and I have shared custody of two children, we have it ruled that he takes one child and I take the other for tax claiming but it wasn’t stated which child goes to who. I have been claiming my son for taxes for the past 2 years and my ex claimed my daughter. This year my efile stated that my ex used my son’s SSN and claimed him. I was told that I can claim my daughter but I still submitted my taxes with my sons SSN because this is how I have been doing it for the past two years, would that make a difference if I have used my son in the past?

  28. this post has been pretty helpful. my husband and his ex have joint physical and legal custody of their 2 boys. she only works part time and he has a full time job plus a half time job as clergy on the weekends. i referenced your post to help us try and figure out the maximum benefit for everyone to which she cited rule 9.
    “Sometimes a child meets the tests to be a qualifying child of more than one person. However, only one of these persons can actually treat the child as a qualifying child. Only that person can use the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit).
    1. The exemption for the child. 2. The child tax credit. 3. Head of household filing status. 4. The credit for child and dependent care expenses. 5. The exclusion for dependent care benefits. 6. The EIC.
    The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these tax benefits between you. The other person cannot take any of these tax benefits unless he or she has a different qualifying child.”
    i’m wondering who is correct here. she is using a cpa to file and we are trying to file on our own. generally they are very cooperative, but as he is self employed half the year, we really get very anxious about filing our taxes because no one wants to be audited! thank you in advance for your help!

  29. Hi Allie,
    That’s a really good question. There is an exception to the residency rules if a person is serving in the military overseas–but your boyfriend is in California so he doesn’t qualify as living with your daughter so he wouldn’t qualify for EIC. He could claim the dependency exemption and the child tax credit.

  30. Hello. I am 20 and a stay-at-home mom in Ohio. We are currently living with my dad. My boyfriend ( and father to my child ) is in the military and has been stationed in California for the 2013 year. My question is, is he able to claim our daughter as a dependent? He supports us financially but due to the residency requirement, I am not sure if he will be able to claim her legally. Thanks in advance.

  31. Hi Deseri,
    You’re in high school. That pretty much shuts down most of the argument right there. Your parents have every right to claim you.

    I would argue that in 99.9% of all cases like yours, your boyfriend couldn’t claim the child. But there are times when he could so lets make sure.

    Does your baby sleep at your boyfriend’s house 50% of the nights or does she come home to sleep with you at night? If she’s not sleeping over at his house for at least 50% of the nights, he cannot claim her.

    Does your boyfriend make enough money to support himself or is he still being supported by his parents? Same thing, he’s got to support himself, his parents can’t be claiming him as a dependent.

    Now think about this. Your parents are supporting you. You and the baby live under their roof. You are not living with the boyfriend, and he is not supporting you. Believe me when I tell you that you are being a financial burden to your parents. (Sorry, but baby’s are expensive.) So unless your boyfriend is working hard and really providing some support for your child- which I doubt or you wouldn’t be living with your parents!

    So, I really think your parents should be claiming the baby that lives in their house, under their roof, with their daughter that is still in high school.

    When your boyfriend makes enough money to put a roof over your head and food on the table–then he can claim the baby. But he’s not doing that yet is he?

  32. Hello, I am wanting clarification on the rules about filing. I am 19 and live with my parents, while attending high school. They intend on claiming me as a dependent on their income tax return. My boyfriend, whom my child spends half the time with filed her on his income tax, as I am not filing due to no income. It seemed most appropriate for him to do so. However, my parents are informing me that he was wrong to do so and in fact fraudulent. They have stated he can and will be prosecuted for it and will pay all that money back, and they will claim my daughter and myself since I technically lived in their home. I am asking if it is legal for him to have claimed her with my permission and do my parents have a legal right to have claimed her or contest this?

  33. Hi Lisa,
    Of course some sort of independent source document is great to have. But when you don’t have it, you use what you’ve got. And believe it or not, the IRS has some experience with sneaky exes. Hold your head up and hold your ground. You know you’re in the right.

    Worst case scenario–you lose. (I don’t think you will but I’m doing the worst case here.) Then you apply for an abatement of penalties on the grounds that you honestly (which is true) believed you were claiming your child correctly. I’m guessing you’d win that. (Not that you need to–I’m still betting on you for claiming you kid in the first place.)

  34. I do have friends and family that can attest to them being here since June, I just didn’t think that was sufficient in the eyes of the IRS. I assumed it was something that neede to come from an indifferent party. I know I am in the right here, but in the past my ex has proven to be very underhanded so I cannot help but to worry that he will come up with something that negates what I will have (if that makes sense). I’m just so scared of penalties and fees if I’m not found in the right. I appreciate your advice and thank you.

  35. Hi Lisa,
    This is going to sound kind of lame, so forgive me. I don’t know you, I’ve never met you. I’m sure you’re a lovely person, but I can’t vouch for you. Hmmm. I can’t, but I bet you know somebody who can!

    Time to gather your girlfriends. Who do you know that knows what’s going on in your life? A friend, family member, neighbor? What are the circumstances that had the children move in with you in June? Is it something that can be documented?

    Since I don’t know what happened, I can’t help you. But, somebody, somewhere, knows the truth and can back you up. You get to play detective and find those people. Good luck.

  36. I also forgot to mention that my ex lives in another state. Not sure if that helps me or not. Thanks agin.

  37. Hi. My kids have lived entirely with me since June of 2013. I went to file my taxes and they were rejected because my ex claimed them already. I am going to paper file but my question is this… How do I prove they have been with me since June? They’re enrollment at school wasn’t until August, didn’t enroll them in Tricare until that time either. If none of these show I’ve had them since June how do I prove that to the IRS when that time comes? I don’t have a lease, I own the house, I don’t go to church so I can’t have a clergyman to vouch for it, no law enforcement officers know them, etc…. My ex husband isn’t a nice or cooperative person so there’s no trying to work it out with him and he has not paid a penny of child support. Please help as I am waiting to send them in until I know without a doubt that I can prove I am the custodial parent. Any help is greatly appreciated! Thanks!

  38. Hi Angelica,
    I’ve never seen that happen. If your husband has not signed on for his ex-wife’s student loans, then there should be no problem. There is no way the his ex’s student loan problem follows his son–it only follows the ex wife.
    You should not worry about your refund being claimed for her loan.

  39. Ok my husband and I have a question on the laws of student loans and filing your taxes. My step sons mother is in default on her student loans and they have taken her taxes last year and plan to take them this year. She is normally the one who claims him on her taxes but this year he lived with us the entire year and she is going to allow us to claim him. She brought up a good point and we need to know if it’s a good chance that this could happen to my husband and I this year. So my question is, if we claim my step son on our taxes this year can the irs take our taxes this year to pay for her student loans? She says she has seen this happen to couples before.

  40. My 2 daughters live with me, in my divorce my ex gets to claim one child each year. he makes over 80,000 a yr and does not qualify for the earned income credit.. my question is, he can still claim her as a dependent and i can claim the EIC child care credit right??

  41. Hi Kacie,
    The important thing to remember is that there is a big difference between claiming the exemption and claiming EIC. You ex is the noncustodial parent, right? So he gets the exemption–and along with the exemption is the child tax credit.

    EIC is for the custodial parent. So you get the child not for the exemption, but for EIC and also to claim the head of household filing status.

    I realize that it’s confusing–I went to school for this stuff. I used to teach this stuff in tax class. Trust me–I’m an expert at this stuff and it still makes my head spin. I can imagine what it does to normal people.

    But I’ve got a link that should help explain how it should look on your tax return: http://robergtaxsolutions.com/2013/01/how-to-do-the-split-exemption-when-preparing-your-own-return/

    Your court order is for the exemption, not the EIC. (Or at least that’s how it should be.) You want to give your ex the 8332 form–because if he uses the 8332 form, then he can’t claim EIC–it protects you. The 8332 form is telling the IRS that he can only claim the exemption, not EIC so you want to give him one.

    But do check out the other post, it should help. Good luck.

  42. A judge ordered that the noncustodial parent get to claim our son until the age of 17 as long as he is caught up one everything (child support, medical, etc.) In the order the Form 8332 is never mentioned. Is there still a chance I can claim my son without being in contempt?
    Also how will I get to claim EIC. My husband qualify this year but only if we have 2 qualifing dependents?

  43. Hi Allyson,
    That is such a good question! I’m glad you asked because I bet lots of people have that problem. If two people share custody 50/50–really you’ve each got the child for 6 months–but in order to claim EIC you need to say 7 months and the other parent can only say 5 months–and that’s not exactly right.

    The IRS gets that. But in order to make the software work, you’re right–say 7 months, have your ex put down 5. That’s something you do to make the software work–and it’s fine.

    As far is the IRS is concerned, the custodial parent is the one who has the child for 6 months and 1 day–but the computer software just doesn’t figure it that way–so use the 7 months. You’re not cheating or doing anything bad or illegal when you do that. It’s expected that you do that–it’s how you tell the computer to process the EIC for your return.

  44. My ex and I have our 2 children 50/50 and I am the custodial parent. It will be his turn to claim the exemption on one of the children this year. Since I am the custodial parent, it is my understanding that I can still list that child for EIC purposes, (but not as an exemption) but if I indicate that I had him for 6 months of the year, that is not enough time to qualify for EIC. I could round up to 7 months, but then the ex would have to put 5 months on his which wouldn’t be completely accurate. Am I following this correctly?

  45. Hi Jared,
    No. If your ex signs the 8332 form, it’s basically saying that the children do not live with you, that means you may not claim EIC. Sorry. The only way you can claim EIC is if the children actually live with you for more than half of the year.

  46. If i have my ex sign the 8332 form where i claim the exemption for the children, and my income is low enough for earned income credit could i get that as well as the exemption. even though i could not claim as head of household?

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