Can I claim half of my child daycare even if the other parent is claiming her?

[macuser_22]

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@Kbenoit wrote:

@VictoriaD75 

Then who in this scenario is able to claim the dependent care credit?

It sounds like you are saying neither party can claim the daycare payments as part of the dependent care credit.

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Only the parent that the child physically lived with can claim the dependent care for what that parent paid.  You cannot claim what someone else paid.

I have seen no IRS rulings or tax court opinions that have addressed the issue of that just being another form of child support.  I suppose that if the divorce decree specifically specifies that the non-custodial parent will pay dependent care expenses directly to the provider and not to the custodial parent, then it might be argued in tax court that it is actually the custodial parents money that was paid, therefore deductible.    Just my opinion.  That is a good question for a tax attorney that practices before the tax court.

[Mansuri]

Hello Halal,

@Hal_Al 
I need help here regarding Earned income credit and daycare credit.

My son is 2 years old and lives with me, he visit his father on alternative weekends. Also We are claiming son on alternative meaning he claims on even and I claim on odd years on taxes. Now my concern is I am paying lot of money into daycare and other expenses.

So how can I claim EIC, daycare credit and dependent care credit? Because according to the agreement I cannot claim my child dependent on his turn. 

In simple words, is there any particular steps I have to follow while filling online, In a way that I am not claiming him as a dependent but at the same time getting EIC and daycare credit or dependent credit? 

[macuser_22]

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@Mansuri  wrote:

Hello Halal,

@Hal_Al 
I need help here regarding Earned income credit and daycare credit.

My son is 2 years old and lives with me, he visit his father on alternative weekends. Also We are claiming son on alternative meaning he claims on even and I claim on odd years on taxes. Now my concern is I am paying lot of money into daycare and other expenses.

So how can I claim EIC, daycare credit and dependent care credit? Because according to the agreement I cannot claim my child dependent on his turn. 

In simple words, is there any particular steps I have to follow while filling online, In a way that I am not claiming him as a dependent but at the same time getting EIC and daycare credit or dependent credit? 

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If you are the custodial parent where the child physically lived for more than half the year (183 nights) and the other parent is claiming the dependent then:

When you enter the dependent, you say that he/she is "Your child" (not you and your spouse if remarried),
he/she lived with you the whole year,
“no” the child did not pay more than half of his/her own support,
"yes", you have a custody agreement,
and "yes", the other parent is claiming this year.  

That will give you the EIC, Child Care Credit and Head of Household filing status if you otherwise qualify.

The child would be listed as "non-dependent EIC & Dependent Care only".

The other (non-custodial) parent can claim the child’s exemption and child tax credit only and needs a signed 8332 form to do so.

[Critter-3]

Since you are the custodial parent according to the IRS for child situations you will indicate this in the interview by choosing the option that you are waiving the exemption to the non custodial parent via a form 8332.  This way you keep the dependent for HOH filing status, the Day care credit on form 2441 and the EIC credit. 

If you are the custodial parent then you should list the child  in the TT program and indicate which ones you are waiving to the non custodial parent via a form 8332... doing this will get you the breaks you qualify for ... just make sure the non custodial parent understands the IRS rules ...

Generally, only the custodial parent is eligible to claim the following tax breaks:

• the dependent's personal exemption
• head of household filing status (if applicable)
• child and dependent care tax credit
• child tax credit and additional child tax credit
• earned income tax credit
• exclusion for dependent care benefits
• tuition and fees deduction or the education tax credits 

However, the custodial parent can waive his or her right to claim a dependent in favor of the non-custodial parent. The non-custodial parent would then be able to claim:

• the dependent's personal exemption,
• child tax credit and additional child tax credit
• tuition and fees deduction or the education tax credits

If you look at the 1040 form under dependents, the child you do not claim should not be listed.

In TurboTax if you edit the personal information. dependents section then the child should be listed as "Non-dependent - EIC and dependent care only".

You should have entered the child this way:

If you are the custodial parent where the child physically lived for more than half the year (183 nights) then:

When you enter the dependent, you say that he/she is "Your child" (not you and your spouse if remarried),
he/she lived with you the whole year,
“no” the child did not pay more than half of his/her own support,
"yes", you have a custody agreement,
and "yes", the other parent is claiming this year.  

That will give you the EIC, Child Care Credit and Head of Household filing status if you otherwise qualify.

The child would be listed as "non-dependent EIC & Dependent Care only".

The other (non-custodial) parent can claim the child’s exemption and child tax credit only and needs a signed 8332 form to do so.

[Mansuri]

@Critter-3 
Thank you so much for explaining me. I am learning, there is so much information out there! Also how do I know that I was able to claimed my son as dependent from 1040 form? I am checking right now and it shows under SCHEDULE EIC line 4b “The child is not a qualifying child.”

does it mean that I didn’t claim him on my 2020 tax return?
Also, upon checking the eligibility of receiving child tax payment I went to Under my IRS PORTAL and it SAYS “No, you're not eligible. You will not receive advance payments.”

Are these two things are connected?