Separation agreement states "husband and wife will equally divide children for tax exemptions", but kids live with me

[naduxa79]

We filed separation agreement very abrupt 8 years ago so it wasn't very detailed as far as taxes.  We are divorced since, kids live with me, he only gets visitation rights every other weekend. I always claim kids on my taxes, but this years he is taking me to court asking court to claim kids for for next 8 years, to be even. Even if court makes me sign 8332, from what I understand 8332 only transfers the dependent exemption and the child tax credit. If my ex has almost no expenses when kids visit him (he lives in another state and I even pack clothing when they go) and he doesn't pay for tutoring and any extra curriculum activities or child care what can he claim? Moreover, my older daughter is over 13, so there is no child tax credit, plus she barely goes there in a recent year anyway. Please help to understand IRS rules before I go to court. Thank you for any information. 

[xmasbaby0 · Accepted solution]

You have it mostly right.  If you sign Form 8332 your ex can get the child tax credit up until the child turns 17 (not 13).

As the custodial parent, you can still get childcare credit for a child under 13 if you pay for childcare so you can work.  And if your income is within the amounts for EIC you are the only parent who can get earned income credit.  He cannot claim anything for paying child support, nor are there any deductions (for either of you) for tutoring, after school activities, etc.

There are no personal exemptions any more, so that is moot.  The exemption was "sort of" replaced by a $500 credit for dependents.  He would get that.

As far as the IRS is concerned it is the custodial parent who gets all of the child-related credits, unless you sign 8332.  Good luck--hope you prevail in court.