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The child tax benefits (earned income credit, child tax credit, child and dependent care credit, and claiming head of household filing status) can be divided between divorced or legally separated parents as follows:
The custodial parent (the parent that lives with the children for the majority of the year) claims:
Child and Dependent Care Credit
Earned Income Credit
Head of Household filing status
The noncustodial parent (the parent who doesn’t live with the children) can claim the following is they have a signed release from the custodial parent:
Child Tax Credit
The Dependency Exemption
If you are the custodial parent, you need to make sure you do the following:
Enter your dependents information as it you were claiming all of the dependent benefits alone.
Enter that you lived with the child for the whole year.
Continue to the question that asks if you have a custody agreement and answer yes.
On the next screen, answer yes the other parent will claim your child as a dependent.
This will allow him to claim the child tax credit and the dependency exemption.
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