@Suchin21 wrote:
Regarding this:
”Even if you use the special rules for children of parents who are divorced or live apart and share custody, you can transfer the $2000 child tax credit but you can't transfer the ability to qualify for HOH. That depends solely on where the child physically lived in 2024, and can't be shared or transferred. “
I actually was only asking about the std vs. itemizing deductions question because just this morning a tax accountant suggested I let my ex have one of our sons as a dependent on his tax return to allow him HoH status as well and to take the child credit (it’s only $500 bc our sons are over 17) if I wanted to help him out. She knew both sons live with me. Now I’m confused on that point.
I did not get a chance to ask the accountant about my deductions question as it was a free consult and we didn’t have a lot of time which is why I asked here.
Free is worth what you pay for it. Find a new accountant. They are ignorant of the law or they are encouraging you and your spouse to commit fraud.
The special rules for children of divorced or separated parents are written down in publication 501.
https://www.irs.gov/forms-pubs/about-publication-501
Trying to keep this brief: The IRS does not follow state court custody orders, the IRS only follows where the child or children physically live. To claim the child as a qualifying child dependent, the child must physically live in the parent's home at least half the nights of the year (which is 183 or more nights). Daytime care doesn't count unless one of the parents works nights. What counts is which parent's home the children sleep at more than half the year. If that is you for 2024, then you are the only parent who is allowed to claim the children as dependents, including all possible benefits of a dependent (the $2000 child tax credit, EITC, HOH status, and the credit for daycare expenses).
You can allow the other parent to claim the child as a dependent and get the $2000 child tax credit, by signing a form 8332 releasing the child to the other parent, which form they have to mail with their tax return. It's a form that says that you agree to not claim the child for the year, and that you agree the other parent can claim the child. (Or you can give your ex your own letter that says the same thing, but it must be in writing and signed in ink, not a text message or voicemail agreement, because the ex must mail the original signed form or letter to the IRS after they file.)
https://www.irs.gov/forms-pubs/about-form-8332
However, the other tax benefits of a qualifying child dependent (EITC, HOH status, and the credit for daycare expenses) always stay with the parent who has custody more than half the nights of the year, and can't be waived, shared, split or transferred. The only way for your ex to claim a child as a dependent and get HOH status is to lie and say the child lived in their home more than half the year. (You would not be actively lying in this case by leaving the child off your return, but you would be facilitating their lie.)
