If you are
married filing separately and both parents live with the child, either parent
can claim the child as a dependent and only that person gets all the child related
benefits ... they cannot be split.
If you are unmarried but live together
with the child, either one of you can claim the child (or children) as
dependents. If the parent who claims the child as a dependent also pays more
than half the expenses of keeping up their home, they can file as head of
household instead of single, which is slightly more favorable. The other
parent should not even list them in Turbotax, because there are some poorly
worded questions that confuse some people.
If you are unmarried or never married
and live apart and share custody, then:
The
parent with whom the child lives more than half the year (184 or more 184
nights for 2016) is automatically entitled to claim the child as a dependent.
This is the custodial parent. (IRS determines custody based on where the child
lives, not any court order or agreement.) The non-custodial parent is
not entitled to claim anything.
However,
the custodial parent can sign a release (form 8332) allowing the non-custodial
parent to claim the child as a dependent. You can download this form from
the IRS web site. The custodial parent signs it and gives it to the
non-custodial parent and the non-custodial parent mails it to the IRS after
e-filing the rest of their tax return. In this case, the non-custodial
parent can claim the dependent exemption and the child tax credit. The non-custodial
parent can never claim earned income credit, the dependent care credit (day
care credit) or use the child to qualify for head of household status.
Those benefits always stay with the custodial parent.
