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No, that is not correct. Grandma is allowed to claim him, simply because the child lives with her. A child can be the “qualifying child” dependent of any close relative in the household. That relative has a higher claiming right than the non custodial parent (you).
That answer assumes that you do not live in the same home with the child and mother.
the question never suggests who the child is living with.
However, it is correct that the taxpayer that the child lives with is the one that can claim the child.
My Son does not live with me but I do take care of him every weekend.
"every weekend" does not make you the custodial parent. The custodial parent is the one with whom the child spent the most nights during the year--at least 183 nights.
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