The ability to “split” the benefits of a child dependent only applied to children of parents who are divorced or separated and sharing custody. In TurboTax, when it asks if you have a custody agreement with the other parent, you need to answer no in your situation, because this question only refers to a legal agreement between parents who are divorced or separated and living apart.
If one parent answera “yes” that they have a custody agreement, they may have been denied certain tax benefits, but the other parent can’t claim those benefits if the two parents are living together.
In your situation, one parent must claim that as a dependent and answer “no” to the custody question, and the other parent should not list a child on their tax return at all. The parent who paid more than half the expenses of the home could claim the child and file as head of household, or the parent who claimed less than half the household expenses could claim the child and file as single. The parent who does not claim a child will also have to file as single.
