why did it say I can still get the child tax credit for a child I didn't claim as a dependent?
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If you are not claiming your child why is the child's information on your tax return?
Did you find the answer to this? I’m running into the same thing. My daughter is listed as a dependent, but I specifically put that I am not claiming her this year. Then, as I get further along TurboTax says I can get a credit of $200 for her. I don’t want to mess up her dad’s taxes so I’m not sure why it’s suggesting I do this.
Are you sure the $200 is for Child Tax Credit?
The IRS looks at who the custodial parent is and who is not. The custodial parent is who the child lives with for more time during the tax year.
When you allow a non-custodial parent to claim a child, you are only releasing the ability to claim the child for Child Tax Credit under the special rule for divorced and separated parents.
The custodial parent retains tax benefits related to Head of Household filing status, Earned Income Credit, and the Child and Dependent Care Credit. To be eligible for these credits, the child must have lived with you for more than half the year, so the non-custodial parent is not eligible for those credits.
This article will give you more information: Divorced and Separated Parents
Ohh! You are right. TurboTax says this “since you paid $xxx.xx for H’s care (my toddler) and the limit is $3,000 per dependent, we can add A (the child I share with my ex-husband) and increase your credit by $200, even though all expenses were paid for H only.”
So your explanation makes sense to me because I am the custodial parent. I was concerned that if I accepted the $200 credit that it would prevent my ex-husband from claiming her as a dependent for 2019 tax year. You’re saying that’s not the case though, correct?
That is correct. When one parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. ... The tax benefits may not be split in any other manner
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