Deductions & credits

If you are going to follow the ruling, then you answer yes, the child lived with you all year (or however much, 60%, 70%, whatever).  Then you answer that you will give the other parent a form 8332 to release the dependent exemption.  (Then you actually need to give the other parent a signed form 8332 because they have to mail it with their return.)

https://www.irs.gov/forms-pubs/about-form-8332

 

The important point here is that certain tax benefits (like qualifying for head of household or EITC) always stay with the parent who has custody more than half the year, and can't be transferred or shared, even by a state court custody order.  So you need to answer "more than half the year" (if that is correct), so that you aren't denied those tax benefits.  And your ex must answer that the child lived with them less than half the year, and that they are using form 8332, so they get the child tax credit, but not other benefits that depend on residency.  

View solution in original post