Do I have to claim EIC in order to claim the Child Care Credit?
I didn't realize my situation was "complicated" but maybe I'm over thinking. My daughters dad and I have 50/50, (one week on and one week off) and choose to switch off years on claiming our daughter as a dependent. It does say on our court child support that I have custody. I pay the child care, and it seems in order to claim that I have to choose that she is with me for 7 months. Also in doing that, it automatically qualifies me for the EIC.
Is there a way I can only claim the child care credit and let him claim the EIC?
I have an older son (different dad) so I also automatically qualify for HOH even without claiming my daughter.
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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 17.
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.
The rule is that only the custodial parent gets the EIC, child care credit and can file as HOH if otherwise qualified. It seems that you are agreeing with your ex that each of you is the custodial parent every other year although by law that parent is the one with whom the child spent the most nights during the year.
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