If one parent claims a child as dependent can the other parent file for EIC? Parents aren't married or live together.

[jnipper1981]

Can one parent file for EIC for a child if the other parent used him as a dependent.  Parents are not married and do not live together.  They both have shared custody.

[BobB7 · Accepted solution]

Forget "shared custody" For tax/IRS purposes the 2014 '"Custodial Parent" is the one with whom the child spent th most nights.  The custodial parent had the right to claim the child as a dependent, the child tax credit, the child care credit, and Head of Household.  The custodial parent can allow the noncustodial parent to claim the dependent and the child tax credit by giving them a signed Form 8332 which they must mail a copy of to the IRS.  But only the custodial parent can claim the EIC, Head of Household, or Child Care credit.

So..the"other parent" can claim EIC if they are the custodial parent.

[macuser_22]

Also see:
See Children of divorced or separated parents (or parents who live apart)
<a href="http://www.irs.gov/publications/p17/ch03.html#en_US_2014_publink1000170897" rel="nofollow" target="_blank">http://www.irs.gov/publications/p17/ch03.html#en_US_2014_publink1000170897</a>

and,

Applying Special rule to divorced or separated parents (or parents who live apart).
<a href="http://www.irs.gov/publications/p17/ch03.html#en_US_2014_publink1000204295" rel="nofollow" target="_blank">http://www.irs.gov/publications/p17/ch03.html#en_US_2014_publink1000204295</a>

[jackhstanton]

what if the custodial parents (by nights rule) has NOT contributed more than half of support?  Can they still claim Head of Household?  If parents have never married and there is no legal agreement re separation -- they live separately but both care for child, does this change anything?  Currently mother has days and father has nights -- so per IRS father is custodial parent?  Even though the mother is taking care of her all day (when daughter is awake)?  It sounds like via 8832 mother can claim tax credit for dependent and child credit, but father gets EIC?  But then mother has to file as if she had child for less than six months, correct?  Very complicated.

[macuser_22]

If the mother works nights, there is a special rule to count the days as if they were nights.

Only the custodial parent by the IRS rules in the link above can claim the dependent care credit, EIC or Head of Household.  The non-custodial parent can only claim the exemption (dependent) and child tax credit.

For a qualifying child, who pays the support is not a consideration whatsoever, as long as the child does not support him/herself.

[jackhstanton]

That was VERY helpful (and boy is it "buried")  one last question -- re Head of Household -- if someone is giving financial support to someone who then uses it for rent etc -- does that money count towards HOH?  or only money earned by proposed HOH?

[macuser_22]

A person claiming Head of Household must pay more than 1/2 the cost of keeping up the home.   Where they get the money to do that is immaterial (earned, gift, inheritance, prize - it does not matter).   Gifts are not reportable income.

See Pub 17 for keeping up a home.  (Note: what "others paid" means persons living in the home that paid directly to the upkeep, not to personal gifts).
<a href="http://www.irs.gov/publications/p17/ch02.html#en_US_2014_publink1000170809" rel="nofollow" target="_blank">http://www.irs.gov/publications/p17/ch02.html#en_US_2014_publink1000170809</a>

[iceman_2187]

So can both parents put the child on their tax dependents section, the same child, if one parent claims dependent care credit ,EIC and HOH and the other claim Child tax credit?

[macuser_22]

@iceman_2187 Yes, provided that the parents did not live together any time during the last 6 months of the year and the parent that did live with the child claims the EIC and Child care credit and gives a signed 8332 form to the parent that did not live with the child releasing the child's exemption and child tax credit.

If the parents both lived with the child any time during the last 6 month of the year, then the child can only be on one tax return that claims all the benefits - they cannot be split in any way.

[BobB7]

The custodial parent can only claim Head of Household if they provide over half the household support.

[jcleveland1995]

Turbo tax let my bf and I both claim our baby. Me, as dependent, his was not. Now we're being audited. What do we do?

[macuser_22]

@jcleveland1995 - TurboTax will "let" you do anything that you tell it to do - legal or not, although the interview is somewhat confusing.  If you both live with the child then only one parent can claim and the child should not be on the other parents tax return at all.

If you both live with the child, you can agree who claims the child and all the benefits.   The child can only be on one return and not on the other at all.  The benefits cannot be split.

The dependent interview is confusing since it asks about custody without really explaining what that means.   That can lead you to answer the questions in a manner that gives credits to both parents when they both live with the child which is not allowed.   The child can only be on one parents tax return and not on the other at all.

*Only* divorced or separated parents that have lived apart for the last 6 months of the year can have a *custody* agreement.   The parent that physically lived with the child is the custodial parent and the parent that did not live with the child the non-custodial parent.   Under those circumstances the custodial parent can release the child's exempt to the non-custodial parent who did not live with the child with a 8332 form (which is a custody agreement).

When *both* parents live with the child, no such custody agreement can exist since both parents have equal custody

[hilary_603]

I am the custodial parent and have my daughter 95% of the time. Per our divorce decree, i allowed my ex to claim my daughter every other year (this is his year.) Because of this, I am not allowed to claim HOH? Or the child Income credit? I filed my taxes first and went through the steps. Turbo allowed me to be HOH and get the credit, without claiming my daughter but now my ex is upset because he is unable to claim her. Do I need to amend my taxes and not include her on there at all (therefor dropping my return significantly) so that he can claim her? Also, I have never given my ex a 8332 form. Is this a necessary step?

[AnnetteB]

Enter it on Schedule C as self-employment income.  See the information below to get started.

https://ttlc.intuit.com/replies/3302122

[AkinaLO]

For more information regarding tax payments, please review this link to the IRS webpage. https://www.irs.gov/payments

Please refer to the following instructions to pay your federal taxes. https://ttlc.intuit.com/replies/3302458