Q. With each parent still claiming at least one full time dependent every year, could they claim head-of-household?
A. Yes. But, to meet the rules, you would have to schedule the time that that child (the one that qualifies you for HoH) stays with you, to be sure it's more than half the year (making you the "custodial" parent, for tax purposes). Keeping a log, in case of an IRS inquiry, would not be unheard of.
Repeating what others have said, for tax purposes, there is no such thing as 50/50 custody, regardless of what your legal agreement says. The requirement, to be custodial parent, is that the child live with you MORE than 50% of the time. One of you has to be the custodial parent and the other the non-custodial parent. The IRS goes by physical custody, not legal custody.
