Who Claims the Kid

[Will]

These situations can get confusing but it is really quite strait forward under the rules. If the parents are not married and live together all year and dad makes 80K and Mom makes 20K then yes mom can claim the child along with the CTC and the EITC. The tiebreaker rules only come in if both parents try to claim the child. Then dad would win.

Regardless of all the opinions expressed above, I can tell you for certain that ddoshan is correct. I've gone through an audit on this, and the IRS assures me that this is correct. I had the $80,000 and $20,000 couple and they agreed that the $20,000 spouse will take the child, with the CTC and a HUGE EIC, even though they had $100 grand income.

[appelman]

I stand corrected.

The parents lived together all year. How can the rule for divorced and separated parents possibly apply? The parents can choose who claims, Pub 17, p. 31, example 9.

BP and ddoshan have it right. The child benefits can't be split up, but either parent can claim them all to the extent they otherwise qualify. However, if the person claiming the child doesn't qualify for HofH, e.g. by virtue of not paying over half the cost of keeping up the home, then NOBODY can claim HofH. If parents can't agree, tiebreaker rules go into effect.

[BP.]

origun had nailed it

To be fair, the first reply, by origun, had it sewn up in 8 minutes.

[snowshoe]

Regardless of all the opinions expressed above, I can tell you for certain that ddoshan is correct. I've gone through an audit on this, and the IRS assures me that this is correct. I had the $80,000 and $20,000 couple and they agreed that the $20,000 spouse will take the child, with the CTC and a HUGE EIC, even though they had $100 grand income.

Thanks to ALL of you. I'm actually relieved to see all of the discussion (& differing opinions)- when I first started doing taxes, there was not a choice. The parent with the higher AGI was the only one to have a claim here. A few/several years back this changed. I've always had a hard time wrapping my head around a situation that appears to 'allow' not just a better tax situation, but taking advantage of EITC. Now, my personal feeling about eitc are similar to one of the posters above- however, I do want to be good at my job & be correct.

In this family, dad doesn't make $80K- he makes maybe $10K more than mom. And I've read the form, the instructions, the pub & the section in TTB & it's not crystal clear to me. Some of the language as well as the example seem to support the idea that if the couple so chooses- the parent with the lower agi can choose to take eitc (and the other child relevent credits) yet the ?'s on the eitc form (and the instructions) are unclear.

The other tax preparer (a CPA) called me about this issue- and I'd love to get back to him with info, although he said he'd look into it as well (haven't heard back from him). I've lost clients due to them being told they'd get into trouble with the IRS (& word gets around with these rumors).