Edited 2/25/18
A custodial parent always has the option of allowing the non-custodial parent to claim the dependency exemption and accompanying Child Tax Credit.
He must furnish the other parent with a Form 8332: Release/Revocation of Release of Claim to Exemption for Child by
Custodial Parent.
In the case of someone who is not the biological parent, the Tiebreaker rules always benefit a parent.
Tiebreaker
rules. To
determine which person can treat the child as a qualifying child to claim the
six tax benefits just listed, the following tiebreaker rules apply.
- If only one of the persons is the child's parent, the
child is treated as the qualifying child of the parent.
- If the parents file a joint return together and can claim
the child as a qualifying child, the child is treated as the qualifying
child of the parents.
- If the parents don't file a joint return together but both parents
claim the child as a qualifying child, the IRS will treat the child as the
qualifying child of the parent with whom the child lived
for the longer period of time during the year. If the child lived with each parent for
the same amount of time, the IRS will treat the child as the qualifying
child of the parent who had the higher adjusted gross income (AGI) for the year.
- If no parent can claim the child as a qualifying child, the child is
treated as the qualifying child of the person who had the highest AGI for the year.
- If a parent can claim the child as a qualifying child but no
parent does so
claim the child, the child is treated as the qualifying child of the person who
had the highest AGI
for the year, but only if that person's AGI is higher than the highest
AGI of any of the child's parents who can claim the child. If the child's parents file
a joint return with each other,
