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Let's go back.  Where did your children physically live more than half the nights of the year?  That is the only parent who has the automatic right to claim a child as a dependent.  Do you have a written agreement for the non-custodial parent to claim one or both children?

 

You said your ex was rejected AND the IRS reduced your return?  Did you get a letter from the IRS?  Why exactly did they reduce your refund (dependent problem, stimulus rebate, or something else)?