Child Care Credit/ non custodial parent

[Kryslyn9]

I am helping my boyfriend file his taxes online and we have some concerns. He was divorced in 2020 and their divorce settlement states he can claim his child on odd year and the mother even years. It also states that instead of child support he is responsible for paying childcare (daycare) expenses. However because he is not the custodial parent, the online forms state he cannot claim child care credits. Is there an exception form we can send in with a copy of his divorce settlement to gain his access to this credit? 

[xmasbaby0]

No.   Only the custodial parent can get the childcare credit.  If your BF is not the custodial parent he cannot enter anything about paying childcare on his tax return.  The IRS does not care about divorce agreements.  The IRS cares who has the child for the most nights during the tax year.

[xmasbaby0]

Are you the custodial parent?  Do you have an agreement with the other parent to allow the other parent to claim them--due to divorce or that you live apart and share custody?  Did one of you sign a Form 8332?

If there is a signed 8332 then the custodial parent retains the right to file as Head of Household, get earned income credit and the childcare credit.  The non-custodial parent gets the child tax credit for children under the age of 18.

As far as the IRS is concerned, the custodial parent is the one with whom the child spent the most nights during the tax year--at least 183 nights.