I agree with TTPhillip, the divorce decree cannot override Federal tax law. If the decree actually says that each parent can claim one child for HOH regardless of who the child lived with, then whoever wrote it does not understand federal tax law. Local decrees cannot override Federal law no matter what they say. The decree is invalid in that respect.
If you are the custodial parent where the child physically lived for more than half the year (183 nights) then:
When you enter the dependent, you say that he/she is "Your child" (not you and your spouse if remarried),
he/she lived with you the whole year,
“no” the child did not pay more than half of his/her own support,
"yes", you have a custody agreement,
and "yes", the other parent is claiming this year.
That will give you the EIC, Child Care Credit and Head of Household filing status if you otherwise qualify.
The child would be listed as "non-dependent EIC & Dependent Care only".
The other (non-custodial) parent can claim the child’s exemption and child tax credit only and needs a signed 8332 form to do so.
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If you are the non-custodial parent where the child did not physically live for more than half the year (183 nights) then:
When you enter the dependent, you say that he is "Your child" (not you and new spouse if remarried),
He/she lived with you zero months,
“no” the child did not pay more than half of his/her own support,
"yes", you have a custody agreement, and
"yes” I am claiming this year.
That will give you the child's exemption, and child tax credit.
The EIC, and Child Care Credits can only be claimed by the parent where the child actually lived.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
