I am recently divorced. I have our children living with me 90% of the time. Per the agreement he can claim our eldest as his dependent and I claim the youngest as mine. I pay childcare for both the ki

[Bsch4477 · Accepted solution]

Since you are the custodial parent you would give him a signed form 8332 to allow him to claim the dependency of one child as well as the child tax credit.  You would include that same child on your return saying that you are not claiming the dependency for him/her. Even though the other parent will claim the dependency, you still get earned income credit and child care credit for that child. It doesn’t matter who actually paid for the child care. You then claim the other child for the dependency and all the other credits. In addition, if you are unmarried and maintain your own household you can file as Head of Household. 

In summary, even though he gets the dependency only you as the custodial parent can claim the child care credit and EIC.