Dear JEM,
When you give the non-custodial parent permission to claim the children by filing form 8332, or making a written statement including the same elements, then he gets to claim them for the exemptions and the child tax credit.
However you get to claim:
head of household
EIC
and Child and Dependent Care tax credits.
Why? because it is the law. Its what the IRS gives as guidance in the special case of divorced and seperated parents. see the following publications:
http://www.irs.gov/pub/irs-pdf/p501.pdf
http://www.irs.gov/pub/irs-pdf/p504.pdf
http://www.irs.gov/pub/irs-pdf/p17.pdf
My ex cannot take the EIC because he makes too much money. I'm the poor one! Just to make sure I'm reading this correctly, I can file Head of Hsehld; take the EIC AND get the Child Tax Credit (Line 52)? My ex and I can both take the same credits?? I don't believe he should be able to get the Child Tax Credit because the children don't spend any time with him. So if I file Head of Household, whose name do I put on Line 4? My older son? He's 17 and earned $2,100 in 2008. Can I also list him on Schedule EIC? I'd read the tax publications but they're too wordy and I lose my patience. :-) I'll give it a try though.
Please confirm so I'll know I read everything right. Thank you!!!!
You may have misread my response, or I do not know which one you are.
The the absent parent does not get the EIC (earned income credit). The custodial parent does. The non-custodial or absent parent who gets to claim the children get the dependent exemption of 3500 dollars.
The custodial parent who files head of household gets the EIC for herself with two qualifying children.
NO you both can not take the same credits. There are two child related credits. The child tax credit and the dependent care and child care tax credits.
The difference is: the child tax credit is based on number of children claimed on the tax return, filing status and adjusted gross income.
the Child CARE and DEPENDENT CARE, tax credits are also based on those elements plus how much you spend on dependent care during the year.
When you file for head of household you include all qualifying children. this is why you really need to file a form 8332, So the IRS understands that you have two qualfying children but that you are not taking the exemptions.
yes to the EIC.
The the absent parent does not get the EIC (earned income credit). OK. This I understand.
The custodial parent does. That would be me. The non-custodial or absent parent who gets to claim the children get the dependent exemption of 3500 dollars. I understand this, too.
The custodial parent who files head of household gets the EIC for herself with two qualifying children. I understand this.
NO you both can not take the same credits. OK. That's what I needed to clarify. There are two child related credits. The child tax credit Which I'm going to assume is the one my ex takes (Line 52 on the 1040 Form). I didn't think he could take this credit because the children don't live with him. I thought that was one of the rules. and the dependent care and child care tax credits. I'm going to assume that I can't take this because neither of my child are under the age of 13. Am I correct?
the Child CARE and DEPENDENT CARE, tax credits are also based on those elements plus how much you spend on dependent care during the year. I have no idea how much I spend on them specifically. I don't break down costs as such.
When you file for head of household you include all qualifying children. this is why you really need to file a form 8332, So the IRS understands that you have two qualfying children but that you are not taking the exemptions. What if I didn't take the kids and my ex has already filed his return without form 8332? It's too late to give it to him, isn't it?
yes to the EIC. OK. Now for my original question: should I put my 17 year old son's name on Line 4? (I believe he doesn't have to file a tax return because he only made $2,100 in 2008.) And can I also take BOTH children for the EIC?? Or can I only take the other child for the EIC? I'm confused! :-(
If the children are under 13, that is correct.
No it is not too late to do the form 8332. It keeps things straight in case the IRS has questions.
You can put his name or the 14 year old on line 4.
You use both children for the EIC.
Tax Preparer
GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Thank you very much for clarifying all that confusing information for me. I really do appreciate it!! :-)
I'd send the brownies to NJ, but they'd probably be stale by the time they got there. :-(
Thanks so much! You're an invaluable resource for people like me who aren't tax-savvy.
What state are you in?
My mothre once sent 52 dozen chocolate chip cookies to me and my soldiers in Suriname South America, all the way from Florida