How do you file taxes if you claim a child every other year?

The process depends on who is the custodial parent—the one with whom the child spends the most nights. Assuming that the mother is the custodial parent, when it’s your turn to claim the child, she must give you a signed form 8332 which allows you to claim the child and receive child tax credit. She would retain the right to file as Head of Household and receive child care credit and earned income credit if otherwise qualified. When it is her turn to claim the child you just leave the child off of your return. 

You will have to pay that back the one child tax credit advance payment that you received.  There is a place to report this on Schedule 8812. If it doesn't come up In the TurboTax interview, enter at:

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

-You and your family

    --Child and Other Dependent credit

 There is a special rule in the case of divorced & separated (including never married) parents. When the non-custodial parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. This "splitting of the child" is not available to parents who lived together at any time during the last 6 months of the year; then only one of you can claim the child for any tax reasons. The tax benefits may not be split in any other manner.

Note in particular that the non-custodial parent can never claim the Earned Income Credit, Head of Household filing status or the day care credit, based on that child, even when the custodial parent has released the dependency to him.

 

Ref: https://www.irs.gov/publications/p17#en_US_2017_publink1000170897

Scroll down to "Children of divorced or separated parents (or parents who live apart)"

The custodial  parent is the parent the child lived with for more than  182 nights  in 2021).

If you are the custodial parent (have actual physical custody more than half the nights of the year), this is the process for years when you don't claim the child:

1. Give the other parent a signed form 8332 that released the dependent exemption to them.

2. List the child as someone you support, and when the program asks about a custody agreement, say "yes" and say that you will give the other parent a form 8332.

3. Turbotax will list the child as "not a dependent this year" but the child will still qualify you for EIC, head of household status, and the dependent care credit (if you otherwise qualify) because those benefits always stay with the custodial parent.

 

If you are the non-custodial parent (have actual physical custody less than half the nights of the year), this is the process for years when you can claim the child:

1. You can only claim the child with a signed form 8332 from the other parent.  If you don't get the form, you can't claim the child and the IRS won't enforce your custody order for you, but you can go to court and ask the court to force the other parent to sign the form.

2. In turbotax, list the child as someone you support, but indicate the child lived with you less than half the year (5 months or less).  Turbotax will ask if you have a signed form 8332 from the other parent, say "yes."

3. Turbotax will give you the child tax credit, but you don't qualify for EIC, head of household status, and the dependent care credit because those benefits always stay with the custodial parent.

4. After you e-file, Turbotax will tell you to mail the original signed 8332 to the IRS with a form 8453 cover page.  Keep a copy for your records. 

 

If you are the non-custodial parent and it is NOT your year to claim the child, either,

a. just delete the child, or 

b. list the child as someone you support, indicate the child lived with you less than half the year, and answer "no" that you will not get a form 8332.  Turbotax will keep the child's name on file but with the notation "not a dependent this year".