Earned Income Credit

[Howco]

Taxpayer and spouse divorced in 2014. TP earns $160k. SP earns $5k. TP pays $12k alimony to SP.

Per divorce decree, children live with Spouse, but Taxpayer gets to claim dependency exemptions for all children.

Does Spouse qualify for earned income credit and head of household status?

[ATSMAN]

Taxpayer and spouse divorced in 2014. TP earns $160k. SP earns $5k. TP pays $12k alimony to SP.

Per divorce decree, children live with Spouse, but Taxpayer gets to claim dependency exemptions for all children.

Does Spouse qualify for earned income credit and head of household status?

For EIC the mother has to prove:

1) Relationship test and that checks out

2) Age Test and that may check out assuming the kids are under 19.

3) Residency test checks out because kids live with mother for full year.

But for HOH mother has to be able to claim the dependency exemption of at least one child.

[Kram BergGold]

Head of Household

If the mother pays more than 50% of the cost of the household and she has a child living with her, then she gets H of H regardless of whether she claims the exemption or she waives it to her ex.

[Justataxguy]

Yes

HOH with non dependent EIC child(ren) because she is the custodial parent.