Claiming a child as a dependent

Forum|Forum|5 years ago
January 2, 2021
16 replies
13 views

We are trying to claim my stepdaughter as a dependent for our 2020 return, but the software is not allowing her to qualify. We are entitled to claim her this year per the separation agreement but the system is not allowing me to designate us to make the claim. It just states she's eligible for the EIC/Dependent Care. What can I do in the system to allow us to claim her?

IsabellaG

Level 13

Maybe you answered a question incorrectly in the interview. If you are entitled to claim your stepdaughter, try going back and revisiting the interview questions in My Info, and choose to Edit your stepdaughter.

Review your answers, particularly to the questions on how many months she lived with you and the screen Do you have an agreement with Stepchild's other parent about who can claim her? Make sure that you said yes, you do have an agreement, and on the next screen Is Stepchild's other parent claiming Stepchild per your legal agreement? that you checked no, the other parent will not claim her for 2020 per the legal agreement.

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mwar99Author

Level 2

Isabella,

Thank you for the response. The answer to the question about the custody agreement is marked for "I have a custody agreement, divorce decree or other written agreement with Jessica's other parent". The next screen does not come up with the question about the other parent claiming the stepchild. It automatically goes to stating she doesn't qualify as a dependent. I'm not sure the software is working properly for this particular item.

Even if I were to mark that the other parent waived their right to claim as a test it still goes straight to telling me she doesn't qualify as a dependent.

Maybe there is an upcoming update?

Opus 17

Level 15

What are you indicating for how long the child lived in your home?

Opus 17

Level 15

You answered one or more of the questions wrong. Go back and start over.

The only parent with the automatic right to claim the child as a dependent is the parent where the child lives more than half the nights of the year. The custodial parent can release the dependent to the non-custodial parent by giving them a signed form 8332 dependent release. That allows the non-custodial parent to claim the child as a dependent and get the tax credit. But the ability to claim EIC, dependent care credit and head of household status always remains with the custodial parent and can't be waived, transferred or shared. (The IRS follows federal law which is superior to any state court order. There is no such thing as 50/50 custody, you have to count the number of night where the child lived and it can't be exactly equal in a normal year with an odd number of days.)

If the child lived with you more than half the nights of the year, you are automatically eligible for all the dependent benefits including the child tax credit and EIC/Dependent care. If the child is only eligible for EIC/Dependent care, that means you answered that you were going to release the child dependent claim to the other parent by signing form 8332.

If the child lived with you less than half the nights of the year, you have to indicate this by choosing "5 months" or less in the program. Turbotax will then ask if you have a signed form 8332 from the other parent. When you say yes, Turbotax will assign the child tax credit but not EIC or the dependent care credit. You must mail the original signed 8332 to the IRS within 3 days after e-filing.

If the other parent refuses to sign for 8332 for you, you can't claim them as a dependent. The IRS will not enforce your custody order. But you could go to family court and have the judge order the other parent to sign.

mwar99Author

Level 2

I didn't answer any questions incorrectly. I did not answer we were releasing the claim by signing the form. The software doesn't seem to be providing me all of the correct questions. It's not asking me if the other parent can claim the child this year or if we are claiming her. My stepdaughter lives with us, the divorce decree provides the alternating dependent claim but the software isn't giving me the option to state we get to claim her this year. It automatically goes to state she doesn't qualify as a dependent. We have not had this issue in the past.