You make the callBy: NATP Research
July 3, 2024

Question: Ryan and Heather are divorced and did not live together at any time during the year. They have one child together, Kaylee, who they have shared custody and placement of. Together they provide all of Kaylee’s support. Both Ryan and Heather meet the requirements to claim Kaylee as a qualifying child, but since Ryan has her more nights during the year, he is the custodial parent. Under the terms of their divorce agreement, Ryan uses Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, to release his claim so that Heather can claim Kaylee. Ryan does not have any other dependents. Can he still claim Kaylee as a dependent for purposes of the earned income credit?

Answer: Yes. Although Ryan released his claim to Kaylee so that Heather could claim her as a dependent, this release only allows Heather to claim Kaylee for purposes of the child tax credit. It does not prevent Ryan from claiming Kaylee as a dependent for purposes of the earned income credit, the child and dependent care credit, the income exclusion for dependent care assistance benefits, or the head of household filing status, if he otherwise qualifies to claim those benefits.

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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.

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