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1.  Mother can give away the dependency to the non-custodial father and as the custodial parent she gets to claim EIC.

2.  You provide more than half of household expense so can file as HOH but you need to have a qualifying child to do that so you have to claim one of the children with all the credits.

3.  Mother claims one child and files as single and gets EIC  and all the other credits for that child.

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