Correct. Legal custody by a court is not Tax custody. The custodial parent that has physical custody by IRS rules (Federal law) can claim the child unless they release the exemption to the other parent with a signed 8332 form. The non custodial parent can then claim the exemption and child tax credit - nothing else. Without the 8332 for the non-custodial parent can claim nothing.
A court order cannot override Federal tax law, but must be enforced by the court that issued the order by holding the parent that refuses to issue the required 8332 form in contempt of court with possible criminal penalties.
**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.**
