Child Support Offset

[shadowdarkness88]

Hi! 
I have 2 kids, share custody of one, and full custody of the other, and the dad of the first, opened a child support case on me, (long story even though we share him) Will my second child whom I claim, will her EIC and child tax credit all be taken or garnished? I  feel that’s unfair as those programs are supposed to help and yes I agree I needed to stay on top of my payments. (I got hurt really bad and stopped working for a little bit) 

[DianeW777]

It depends.  If you claim a child that lives with you for the full tax year and you are not required to pay support for that child, you will not lose any of the earned income credit (EIC) or the child tax credit (CTC) you are entitled to on your tax return.  However, if you have a delinquent amount of child support you are required to pay, and the state has issued a statement of delinquency to the IRS, then any amount due can be taken from your overall refund on your tax return.

As far as the other child, regardless of the state custody agreement, the federal tax law simply counts the days living with each of you.  Whoever has had the child the highest number of days in the tax year is entitled to claim that child.  See the link below for a qualifying child on your tax return.

• Who can I claim as my dependent?
• IRS Topic-Reduced Refund