I share custody of my child with the child’s mother. However, the child actually lives in my home the majority of the time. An agreement was reached allowing the mother to claim the child in the odd years, I will claim him in the even years. What do I lose in the years I don’t claim him as a dependent?
Establishing dependency of a “qualifying child”:
You can claim a “qualifying child” if they meet specific requirements related to residence, relationship to you, age, financial support provided and income.
Claiming dependents can give you a tax deduction worth up to $3,900 per dependent and also make you eligible for many other tax deductions like the Earned Income Tax Credit.
Since the child’s primary residence is with you, the mother cannot claim the child as a dependent unless there is a written agreement dated after 1984 and before 2009 in which the following is stated:
1. The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.
2. The custodial parent will not claim the child as a dependent for the year. (Custodial parent attaches form 8332 revoking his right to claim the dependent in the current year to his return.)
3. The years for which the noncustodial parent can claim the child as a dependent, i.e. odd/even years.
You as the custodial parent—even without claiming the child as a dependent—are still entitled to the Earned Income Credit, a tax credit for low to middle income wage earners which is a refundable credit with a maximum of:
• $6,044 with three or more qualifying children
• $5,372 with two qualifying children
• $3,250 with one qualifying child
• $487 with no qualifying children
In the year the noncustodial parent claims the child as a dependent and in addition to several other dependency related credits, you lose:
1. Child and Dependent Care Credit Expenses
2. Child Tax Credit
3. Additional Child Tax Credit
Divorced, separated or living apart parents who take credits they are not entitled to can be disallowed future credits for two years for reckless disregard of the credit rules or 10 years for fraud.
More information may be obtained at: IRS.gov/Credits-&-Deductions.
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Questions for Deborah Ritz can be e-mailed to The Weekly Adirondack at WeeklyADK@yahoo.com