Claiming that the child lived with you would allow you to claim certain tax benefits of the dependent that you are NOT entitled to, because they only stay with the parent who has physical custody more than half the year. Doing that will also likely cause an e-file conflict, that blocks you or the other parent from filing, and will result in an IRS investigation. Answer No (if that's the case) and then answer the follow up questions. You will have to mail your signed form 8332 or signed agreement to the IRS after e-filing, use a mail service with tracking.
