Can unmarried parents living together both claim (split) the child and dependent care credit?

[aperezm]

We paid a total of $10,725 in childcare expenses for our child.  I had $5000 in an FSA. Can we split the childcare paid amount so that we both claim the dependent care credit?

[Vanessa]

No.  Only one of you would be able to claim your child as a dependent on your return and take all of the credits and the exemption for the child.  

Except for special rules for Divorced and Separated Parents, the IRS basically has an all or nothing rule.

[aperezm]

Thank you!

[Opus 17]

No.  In this situation only one parents may list the child as a dependent, and that parent can use the dependent care credit.  The other parent should not even list the child on their tax return.

(There is a weakness in the Turbotax interview that can lead to both parents claiming tax benefits for the child, if you answer "yes" you have an agreement to share custody.  This refers only to a court order between parents who live apart and share custody, and you need to answer no, there is no agreement in your case, to prevent the child from being claimed twice.)

[aperezm]

Thank you.  Yes, it was the "weakness" in the interview that led me down this path.  Appreciate the response.

[Opus 17]

Apparently, a focus group told Turbotax that asking "do you live together unmarried with the other parent" was too sensitive a question to ask on a tax return.

[aperezm]

That's unfortunate, this could have had some consequences later down the line had I not asked the question in this forum.

[Dave5550]

Completely agree.  Turbotax needs to get its act together for unmarried parents that live together.  It just let me take the child and dependent care credit, even though I thought only one parent can take this credit and we intend Mom to take it unless we both can.

[Dave5550]

And now what's worse, I can't delete the application of the credit!  I tried deleted the care provider, then I tried saying I didn't have any childcare expenses, but the $600 credit is still sitting there.  help!