By Deborah Ritz
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 $3,950 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 in which the following is stated and provided:
1. The non-custodial 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 non-custodial 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: $6,143 with three or more qualifying children; $5,460 with two qualifying children; $3,305 with one qualifying child; $486 with no qualifying children.
In the year the non-custodial parent claims the child as a dependent and in addition to several other dependency related credits, you lose: Child & Dependent Care Credit, Expenses, Child Tax Credit and Additional Child Tax Credit.
Divorced, separated or living apart parents that 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.
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