- Asked by andreab511254
You give him the signed form 8332 so he can file it.
Yes, he will be allowed to claim her for this year and get the $1,000 child tax credit. You claim the EIC, because you are the physical custodial parent (the one that has the child the most nights during the year).
You also get to claim the daycare credit and head of household, if otherwise appropriate
My fiance and I live together and just had a child in June, I have a higher AGI so I am considered custodial parent however she would qualify for EIC if she claimed her. Upon checking the box stating I have form 8332 and entering our daughters info, Turbotax recommended I file as head of household as I covered half the expenses even though I'm not claiming her. From the sounds of it upon further review it looks like I may have to amend my return .
Can I claim head of household if I released the right to claim my dependent to the non custodial parent but still cover the majority of the cost of the household?
I came to that initial conclusion through this information (bold identifies our situation):
You can claim the Head of Household filing status on your tax return if you are unmarried, have cared for a dependent for over half the year, and paid more than half the cost of maintaining a home.
Taxpayers claiming the Head of Household filing status benefit from a higher standard deduction and lower tax rates compared to the single filing status. The definition of head of household is quite specific, so read over the criteria carefully.
- You are unmarried or considered unmarried on the last day of the year.
- You paid more than half the cost of keeping up a home for the year.
- A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the "qualifying person" is your dependent parent, he or she does not have to live with you.
- legally separated from your spouse under a divorce or separate maintenance decree, or
- married but lived apart from your spouse for at least the last six months of the year.
"Qualifying Person" To qualify for the head of household filing status, a qualifying person needs to live with you in your home for more than half the year. The rules for qualifying persons for head of household are different than the rules for dependents. Only certain types of relatives can be qualifying persons for HOH as follows:
- Child, step child, adopted child, foster child, brother or sister, or a descendant of one of these whom you can claim as a dependent under the qualifying children rules;
- Child, step child, adopted child, foster child, brother or sister, or a descendant of one of these whom you would be able to claim as a dependent under the qualifying children rules but choose not to claim as a dependent because you released the dependent's exemption to the noncustodial parent;
- Mother or father who can be claimed as a dependent under the qualifying relative rules;
- Brother, sister, grandparent, niece, or nephew whom you can claim as a dependent under the qualifying relative rules.
Form 501 states:
Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit).
The exemption for the child.
The child tax credit.
Head of household filing status.
The credit for child and dependent care expenses.
The exclusion from income for dependent care benefits.
The earned income credit.
The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these tax benefits between you. The other person cannot take any of these benefits for a child unless he or she has a different qualifying child.
Was hoping to file her taxes today when I came across this info and now I'm confused again
He gets to claim the dependent - but the child has not lived with him at all. Allowing his to claim the child does not give up my right/ability to claim the EIC correct?
Thanks for taking the time to answer.