My (separated) wife and I have 2 kids, 50/50 custody, and per our agreement, each claim 1 child. But I pay all child-care costs for both kids. How do I claim those costs?

[Uberdoop]

Can I claim the expenses for the child I'm not claiming as a dependent?

[Phillip1 · Accepted solution]

One of you will be considered the custodial parent by the IRS, the child and dependent care credit can only be used by the custodial parent even if they are not claiming the dependent. The custodial parent will be the parent with whom the child spent the most nights during the year (more than 183 nights).

If the children spent more time you during the year and you are not claiming them as dependents, you need to make sure that you enter that the children spent the majority of the year with you in the dependent questions and that you are allowing the other parent to claim the children as dependents. At the end of the dependent screens, the list of dependents should say "EIC or Dependent Care Credit Only" if you have done it correctly.

Then proceed to the following section of TurboTax:

1. Click on the Federal category in the left hand navigation of TurboTax
2. Choose Deductions and Credits at the top of TurboTax
3. Find the "You and Your Family section and click show more
4. Click start on Child and Dependent Care Credit and proceed through all of the screens.

[Uberdoop]

Thanks! For the purposes of our taxes, we each say 1 of the kids is with us more than half the year, so we are both able to file head of household. If I understand you correctly, I would have to say both kids are with me more than half the year in order to claim the child-care expenses for both. She would still be able to claim one as a dependent, but she would lose head of household status — is that right?