I am divorced and it is my year to claim my child as a dependent. My ex wants me to claim what she paid all year for day care on my taxes. Is that ok?

[Critter]

Only the custodial parent claims the day care expenses. 

 Are you splitting the child correctly ?

Generally, only the custodial parent is eligible to claim the following tax breaks:

• the dependent's personal exemption
• head of household filing status (if applicable)
• child and dependent care tax credit
• child tax credit and additional child tax credit
• earned income tax credit
• exclusion for dependent care benefits
• tuition and fees deduction or the education tax credits

However, the custodial parent can waive his or her right to claim a dependent in favor of the non-custodial parent by giving the non custodial parent a signed form 8332. The non-custodial parent would then be able to claim:

• the dependent's personal exemption,
• child tax credit and additional child tax credit
• tuition and fees deduction or the education tax credits

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 exemption to him... these benefits remain with the custodial parent. 

[Carl]

As an addendum for others reading this post, what your divorce decree or separation agreement may say doesn't apply when it comes to taxes. The IRS has their own set of rules that have to be followed. What any document issued by a legal authority *below* a federal court may say, just flat out doesn't matter.