7.2 Child Care Credit/Other Credits: Child Tax Credit
Can a custodial parent claim the Child Tax Credit if the noncustodial
parent claims the child as a dependent due to the divorce agreement?
The custodial parent cannot claim the Child Tax Credit for a child in the
tax year that the noncustodial parent takes the exemption for that child.
Please refer to the 1040 Instruction Booklet index for the Child Tax Credit.
The referenced pages will explain who qualifies for this credit and how to
calculate it.
References:
Does the Form 8332 (used to release the exemption to the noncustodial
parent) affect the Child Tax Credit?
Yes. The Child Tax Credit can only be claimed by the parent claiming the
exemption. In this case the noncustodial parent would qualify for the dependency
exemption and therefore the child tax credit. Please refer to the
Instructions for Form 1040 or the
Instructions for Form 1040A index
for Child Tax Credit. The referenced pages will explain who qualifies for
this credit, and how to calculate it.
References:
8.1 Earned Income Tax Credit: Qualifying Child Rules
If the noncustodial parent receives permission from the custodial
parent to claim a child on his or her tax return, is the noncustodial parent
eligible for the Earned Income Credit?
The noncustodial parent cannot claim the Earned Income Credit on the basis
of that child because the child did not live with that parent and does not
meet the residency test. The custodial parent may be able to claim the Earned
Income Credit.
Refer to Publication 596, Earned Income Credit, for the Earned
Income Credit rules .
References:
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