Yes, it is very possible to be eligible to receive the
Earned Income Tax Credit even for the years that the child’s other parent is awarded
the child’s exemption.
NO, you cannot be Head of Household without a dependent.
You need to check what your divorce decree states.
Normally it will state that parents switch the exemption allowance for the child/children.
The parent that has the child/children more than half the year is the parent that can claim the child for the Earned Income Tax Credit. Even if you make an agreement, the IRS will not let the parent claim the EIC if the child did not live in his/her household over half the year (among other things).
I suggest you answer the questions and let TurboTax guide you. The software will determine what filing status you are entitled to and calculate
the credit (if you are eligible for it).
Click on this link to view what the IRS says about your situation.
https://www.eitc.irs.gov/Tax-Preparer-Toolkit/faqs/divorced
Pay close attention
to the second part that says:
Divorced parents have
joint custody of a child and the marital settlement agreement by the court
provides for the parents to alternate claiming the child as a dependent. How
does this affect the EITC? Is the parent who is entitled to the dependency
exemption also entitled to the EITC if the parent's income warrants it?
Under the special rule for divorced or separated parents or
parents who live apart at all times
during the last 6 months of the calendar year.
The noncustodial parent may claim the dependency exemption
for a child if the custodial parent releases a claim to exemption. Also, the noncustodial
parent may claim the child tax credit for the child if the requirements for the
child tax credit are met. Usually, only the custodial parent may claim the
EITC, because the child must meet the residency test for qualifying child, that
is, the child must live with the parent for more than six months of the year
except for temporary absences.
Generally, custody is determined by the number of nights the
child slept in the home of the parent or the parent had responsibility for the
child for that night. Consult Publication 501, Exemptions, Standard Deduction,
and Filing Information for more details and exceptions such as temporary
absences.
https://www.irs.gov/uac/about-publication-501
The parents can only alternate the EITC if they change the
pattern of who has physical custody.
(PLEASE NOTE: E.I.C, EIC AND EITC IS THE SAME THING. Some people will say" Earned Income Tax Credit", while others shorten it to just the "Earned Income Credit")
