@Gleverjoy wrote:
Another thing is, the child doesn’t physically live with his dad but he is with his grandparents house. Can that make another argument or does that qualify any parent to claim the child?
All the rules are here, although it may take several reads to understand it all.
https://www.irs.gov/forms-pubs/about-publication-501
If the child lives more than half the nights of the year in the same home as one of the parents, then the "special rules for children of divorced or separated parents" apply. It can be someone else's home, as long as the parent and child live together. The child can only automatically be claimed as a dependent by the parent where the child lives more than half the nights of the the year. This is the "custodial parent" according to the IRS. (The IRS does not follow and is not required to follow state court orders.) The non-custodial parent can only claim the child as a dependent if the custodial parent gives them a release form.
If the parent where the child physically lives changes from year to year, then the parent with the automatic right to claim the child will also change from year to year.
If the child does not live in the home of either parent for 183 or more nights -- such as the child lives with grandparents most nights and one of the parents does not live with them -- then the special rules for children of divorced or separated parents don't apply. The grandparents can claim the child under the ordinary rules, and the release form 8332 is not used -- the grandparents can't use that form to transfer the dependent to either parent if the parents and child don't live together.
