Basically this question is for divorced parents in which one parent may have been granted custody of their child (custodial parent), and wants to let the non-custodial parent the right to claim the child as a dependent on their (non-custodial parent's) income tax return. This would mean that the custodial parent would forgo claiming that same child on their own income tax return for that year. So, if you let your ex-spouse claim your child on their income tax return that year you would answer Yes. If not answer No.