I'm divorced but for now still sharing a house with ex-wife & 2 kids. I make more $ and will claim Head of Household. Can she claim the kids as dependents this year?

[dmagin78]

Divorce decree says to alternate years for claiming dependents, I claimed them last year. Just making sure that since we still live together will not change her ability to claim our 2 kids.

[DawnC0 · Accepted solution]

Yes, she can claim the kids.  However, if she claims the kids, you can't claim Head of Household (unless you have another dependent on your tax return).  

Since the children live with both of you, either of you can claim them.  The divorce decree does not matter to the IRS, only custody does.  Additionally, whoever claims the children also claims any other dependent credits (Child Tax, EIC, Child/Dep Care), including the Head of Household filing status.  You will need a dependent not listed on your ex's return on your tax return to file Head of Household.  

You can choose an arrangement that is the most tax beneficial to your family.  You can each claim one child or either of you can claim both.  However, if you each claim one child,  since you live in the same household, only 1 of you can be Head of that Household, the other would need to file as Single.