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How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

After my now ex-husband filed taxes for us for us for the last fifteen years, I'm now filing myself for the first time since our divorce in December of 2018 (and I'm a bit overwhelmed).  My ex-husband didn't actually move out of the house until February of 2019, so he and our son both lived with me for the entire year, and we began time-sharing parenting in our separate homes in February of 2019.  Under the divorce agreement, my ex-husband gets to claim our only son as a dependent in even years (so 2018), and I get to claim him in odd years (so next year).  When I answered the questions at the beginning of the filing process, I entered information about my son, and Turbotax determined that I was a Head of Household.  I do recall answering a question somewhere about sharing a dependent under a divorce agreement, and I thought the program would come back to that later for details, but it never did, and now I can't find that question.  I went through the rest of the program and filled out information about daycare that I paid for in 2018, but I'm not sure I'm entitled to claim it in 2018 on my federal return.  However, it looks like California allows some dependent deductions that the feds don't, so I still want the information in there.  Turbotax thinks I'm done and ready to file, but I'm at a loss for what to do--do I need to delete the daycare information where it was asked of me in my federal return?  Do I need to delete my son as a dependent?
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How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

If you are the parent who has custody more than half the year, only you can qualify for head of household and the dependent care credit.  Your ex can only claim the child tax credit, and only if you give your ex a signed form 8332 dependent release, which your ex must mail to the IRS.  If your ex claims anything else they are filing incorrectly.  

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How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

If you are the parent who has custody more than half the year, only you can qualify for head of household and the dependent care credit.  Your ex can only claim the child tax credit, and only if you give your ex a signed form 8332 dependent release, which your ex must mail to the IRS.  If your ex claims anything else they are filing incorrectly.  

How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

Thank you so much, Opus 17!  What you've said makes sense, but could it be that the divorce agreement itself counts as the 8332 release, when it says that he gets to claim our son in even years, and I agreed to that?  (To be honest, I had no idea what that meant at the time, and I obviously still don't.)  It seems like the agreement says that I should have to give up those credits this year, but the facts don't really support it.  Maybe the answer is that the dependent tax part of the agreement didn't really come into force until after he actually moved out?

How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

OK, I misread the details of your question.  Your situation for 2018 is different because you all lived together.

For 2018, because the child lived with both parents more than half the year, either parent can claim the child as a dependent.  If that is not you, you should delete the child completely (the turbotax interview does not handle this situation well).  You don't qualify for head of household or to claim the dependent care expenses.  The ability to "split" the benefits of a dependent only apply to parents who are divorced or separated or never married, and who live apart and share custody.  Because you lived together, though unmarried, you can't split the benefits.  Your husband can claim everything and you can't claim anything.  You don't need to give your ex any forms.

If you paid the day care expenses and not your ex, your ex could claim the credit in his name.  The idea is that the day care money was a gift from you to him and then he paid and claims the credit.  But, if you each paid part of the expenses, then he probably is already maxed out on the amount he can claim and it won't make a difference.

Then, for all future years:

The only person who has the automatic right to claim a child as a dependent is the parent where the child lives more than half the nights of the year (183 or more nights).  The IRS is federal law and is not bound by state court orders. There is no such thing as "equal custody", you have to actually count the number of nights if you aren't sure.

If the non-custodial parent is supposed to claim the child in a particular year, that requires that the custodial parent gives the non-custodial parent a form 8332 dependent release.  This allows the non-custodial parent to claim the child tax credit only.  The custodial parent always gets to use the child to qualify for EIC, head of household, and the dependent care benefit; these can never be waived, transferred or shared with the non-custodial parent.  That's just federal law and it can't be superseded by a state court order or agreement.

The divorce order does NOT substitute for form 8332, unless the divorce order was signed in 2008 or earlier.  In cases where both parents try to claim the same child, the IRS does not want to be in the business of reading court orders and trying to decide who gets to claim the child, if child support is current, etc.  If the custodial parent won't sign the form, the non-custodial parent can go to family court and ask the family court to order the other parent to sign, but the non-custodial parent can't enforce the dependent claim through the IRS.  The IRS requires form 8332, that makes it easy for them.  

In turbotax, the non-custodial parent answers that they had custody less than half the year, there is a custody agreement, they do have a signed form 8332.  This will properly claim the child tax credit only.  The non-custodial parent will have to mail the form 8332 to the IRS after e-filing the rest of the return.  If they don't send the form, the IRS will deny the child tax credit.  

The custodial parent will answer they had custody more than half the year, there is a custody agreement, they will give the other parent form 8332.  The program will properly claim EIC, head of household and the dependent care credit (if otherwise qualified) and will not claim the child tax credit.

If one of the parents gets an e-file block, then someone made a mistake.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f8332.pdf">https://www.irs.gov/pub/irs-pdf/f8332.pdf</a>

So for 2018 taxes, no forms are needed because the child lived with your ex and therefore your ex can claim the child without extra forms.  But starting with 2020, you will need to give your ex a form 8332 every other year.  Or, you can give one form that specifies all the future years covered by the agreement.

How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

Opus 17, you are a Godsend.  Thank you so much for helping me understand the situation in such crisp details.  Based on your answer, I feel like I know what to do for every year starting in 2019.  But I hope you'll forgive me one last clarification on 2018, because our facts depart from the above picture in a small but perhaps important respect.  

We all lived together in the same house all year, but after the December divorce and until the end of the year, I was the exclusive provider of housing and financial support for my son (and my ex).  We all lived in the house that I owned myself, having bought his share out as part of the divorce settlement.  I paid for all living expenses without contribution by him until he moved into his new home in February 2019.  

Does this mean that my son lived with me for the majority of 2018, because he lived equally with both of us (being supported by both of us) all the way until the divorce, but then was supported only by me in the last few weeks of the year, tipping the scale?  Sorry, I promise this will be my last question!!

How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

Who pays the child's support is not a decisive factor in determining who can claim a qualifying child dependent.  As long as the child does not pay their own support (child actor, etc.) the rules are very focused on where the child actually physically lived.  In your case, the child lived with both parents, so either parent can claim the child.

If there is a disagreement on who should claim the child, the first tiebreaker is who had custody the greater number of nights. That is 365 for both you and your ex for 2018.  The second tiebreaker is income; if you can't decide who should claim the child, the IRS will award the dependent to the parent with the higher taxable income.

But, even assuming that is you, you still have an agreement that your spouse will claim the child this year, and you probably don't want to annoy the judge by breaking it so soon.  And because the child lived with both parents more than half the year (more than 183 nights), you can't use the "splitting" rules no matter who claims the child.  For this year, it is all or nothing.

How should I report my son and his daycare expenses under a December, 2018 divorce agreement that lets my ex-husband claim him as a dependent in even years (I get to claim in odd years), even though they both lived with me for the entire 2018 year (even a

Got it--not the answer I was hoping for, but one I was prepared for.  Thank you, Opus 17, so so much for all your help!  
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