Yes, he can, shouldn't be an issue unless you guys are filing together. I would try to get my audit cleared up before filing again. Especially if they say you owe, they will take your tax return if filing jointly. Turbo tax has audit protection too. They help through the process, so make sure you spend the extra $40. Its worth it.
It depends. If the children are his Qualifying Children, and he is the parent with whom the child lived the longest, then yes he should.
For a Qualifying Child there are 5 tests:
- Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
- Residence: Must have the same residence for more than half the year.
- Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
- Support: Must not have provided more than half of their own support during the year.
- Joint Support: The child cannot file a joint return for the year.
"Under the tie-breaker rules, the child is generally treated as a qualifying child of:
- The parents if they file a joint return;
- The parent, if only one of the persons is the child's parent;
- The parent with whom the child lived the longest during the tax year if two of the persons are the child's parent and they do not file a joint return together.
- The parent with the highest AGI if the child lived with each parent for the same amount of time during the tax year, and they do not file a joint return together;
- The person with the highest AGI if no parent can claim the child as a qualifying child; or
- A person with higher AGI than any parent who can also claim the child as a qualifying child but does not."
You no longer claim the dependent exemption ($4050 for the tax year 2017) due to the changes made for the 2018 tax reform bill. However, you do still need to know whether the dependent is a Qualifying Child or a Qualifying Relative for the new Child Tax Credit (up to $2000) or the new $500 credit for other dependents.
You can find out more information about taking a dependent on your tax return here.
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