Help! Divorced Parents

[Gary]

I have a client that is divorced and has joint custody of their child. the child's father claims head of household and my client filed as single last year. She says that she takes the deduction every other year, and the parent that doesn't take the deduction claims Child Care Credit. I seem to recall that this is allowable, but I can't find it written anywhere. Can anyone help me?

Gary

[Jesse]

The custodial parent takes the child care credit whether or not they claim the dependency deduction.

The parent taking the dependency deduction will need a form 8332 signed by the other parent as they are then the noncustodial parent.

[Gretel]

If you mean "claim the deduction" as head of household, that is wrong. A person with a dependent can claim HOH only if over 50% of keeping up a home for himself and dependent is paid. Unless the child lives every other year more than 50% with the other parent.

[Gary]

Just Child Care Credit

No. She is filing sigle. I just want to know if she can take the Child Care Credit. Her Ex is taking the dependency this year.

Gary

[Snaggletooth]

Can't Split...

...the dependency and the child care credit. That's my opinion, based on comments by others over the last two years on this board. However, there has been plenty of discussion by some heavyweights who disagree.

And after all the "uniform definition of a child" it turns out that the decree of a local judge will prevail just as in days of yore with respect to dependency. It was supposed to stop with the post 1984 decisions but that didn't happen. Then it was supposed to stop in 2005 with this "uniform definition" but that didn't happen either.

Custody, however, is wherever the kid spends most of his time, regardless of how the court awarded. This most likely determines HH and of course the biggest fish in the pond, the EIC. When someone wants to claim EIC and tells me it's a 50-50 arrangement, I tell them that's not good enough. For tax purposes, custody is over 50%.

This may not be conclusive, but my software does not allow splitting of the child dependency and CTC.

[BP.]

>>the parent that doesn't take the deduction claims Child Care Credit<<

Not necessarily correct.

As Jesse stated:
>>The custodial parent takes the child care credit whether or not they claim the dependency deduction.<<

Check out TTB p. 3-15.

[Davc]

.
Custody, however, is wherever the kid spends most of his time, regardless of how the court awarded. This most likely determines HH and of course the biggest fish in the pond, the EIC. When someone wants to claim EIC and tells me it's a 50-50 arrangement, I tell them that's not good enough. For tax purposes, custody is over 50%.

I tell them that neither gets HH or EIC in that situation.

[Gary]

Thanks

Thank you all for your replies. It is obvious that the non-custodial parent can never take the child care credit.

Gary

[jainen]

I'll bet

>>It is obvious that the non-custodial parent can never take the child care credit.<<

I'll bet I can prove you are wrong about that.

[S T]

Oh - Oh

If Jainen is challenging, I am not going to post my 2 cents worth!

Sandy

[Ken]

child tax credit

I agree with whoever says a non custodial parent can indeed get the child credit. A non custodial parent cannot get the earned income credit, but they can get the child tax credit.

[jainen]

I can prove you are wrong

>>I'll bet I can prove you are wrong about that.<<

Darn! Nobody took the bet!

[GIMoe]

Bet

>>I'll bet I can prove you are wrong about that.<<

Darn! Nobody took the bet!

I don't think anyone liked the odds...

[BP.]

>>I'll bet I can prove you are wrong about that.<<

Darn! Nobody took the bet!

Hold up, I'm ready!

All right, I went down a few dead ends with this one, but I'm ready to take a stab at it.

Referencing the 3 bullet points in Form 2441 instructions, p. 2, under Married Persons Filing Separate Returns. Husband & wife lived together with their child for the first 6 months of the year. They lived apart the last 6 months, when husband moved out. First bullet point satisfied: "You must live apart from your spouse last 6 months of year." The child continued to live with mom 4 more months. Child then went to live with dad the remaining two months, for a total of 8 months living with dad. Second bullet point satisfied: "The qualifying person must live with you more than half the year." Let's say dad met third bullet point: "You provided over half the cost of keeping up your home." Mother is deemed custodial parent as child lived with her the longer part of the year (10 months), but dad will still qualify to take the Child Care Credit, if he paid the expenses. Whew! Is that right??

[jainen]

Very good

>>Whew! Is that right??<<

Very good, Burbs Philly!! The custodial parent is the one with whom the child lives the greatest part of the year when she lives with one or both for more than half the year. Usually we think of that in terms of an absent parent who can only claim the exemption (but not child care credit) through Form 8332.

But that's not what the definition says. In your example the non-custodial parent still has a qualifying child (lived with her more than six months). Of course, he will lose the tiebreaker if the other parent claims her, but if they agree, the non-custodial parent can claim all the benefits of his qualifying child.