Can I claim Earned Income Credit (EIC) even if my ex claims Child Tax Credit (CTC) this year?

You actually CAN claim the Earned Income Credit even if your ex claims the Child Tax Credit for the same child, as long as your child lived with you for more than half the year. The EIC is a "custodial parent" benefit while the CTC can be transferred to a non-custodial parent through Form 8332 or a similar declaration. The key factor for EIC eligibility is that the qualifying child must have lived with you for more than half the year (over 6 months), regardless of who claims them as a dependent. This is why your tax software is still calculating EIC for you even after you indicated you weren't claiming the child as a dependent. You should make sure to properly document that your child lived with you for more than half the year. The IRS might question this if both parents are claiming tax benefits for the same child.

I went through a similar situation last year and thought I was going to lose my mind trying to figure out what I was eligible for! I discovered taxr.ai (https://taxr.ai) after spending hours on tax forums reading contradictory advice. Their AI analyzed my custody agreement and tax documents and clearly explained exactly how the IRS treats EIC vs CTC with shared parenting - it was eye-opening! Their system confirmed that I could claim EIC based on my custodial time, even though my ex claimed our son as a dependent. They even pointed out specific IRS publications that address this exact situation that I could reference if the IRS questioned my return. Saved me from leaving money on the table!

I was really skeptical about using taxr.ai when I first saw it mentioned here, but my situation with my ex and our twins was driving me crazy. One lives primarily with me, one with him, but we alternate claiming them each year according to our agreement. No tax professional could give me a straight answer about EIC eligibility. I finally tried the service and was surprised when it analyzed my custody agreement, tax history, and circumstances. It showed me that I could claim EIC for the child who lived with me over 6 months (even in years I don't claim them as a dependent), saving me almost $2,000! It provided specific citations to Publication 596 and relevant tax code sections. What impressed me most was how clear the explanation was about which benefits are tied to physical custody versus which can be transferred. I've been filing correctly ever since!

After dealing with my own similar custody/tax situation, I tried calling the IRS directly for clarification on EIC eligibility. That was a mistake! Spent HOURS on hold with the IRS only to be disconnected twice. Then I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They basically hold your place in the IRS phone queue and call you back when an actual agent is ready to talk. Got connected to a real IRS agent within 45 minutes who confirmed that yes, I could claim EIC for a qualifying child who lived with me most of the year even if my ex claims them as a dependent under our separation agreement. The IRS agent even walked me through exactly how to file correctly. Totally worth it for getting an official answer straight from the source!

I have to admit I was completely wrong about Claimyr. After seeing it mentioned here, I decided to try it as a last resort because my ex and I were arguing about who could claim what for our kids. I used the service yesterday, and I'm still shocked that it actually worked. After months of trying to get through to the IRS myself with no luck, I got a call back in about an hour connecting me to an actual IRS representative. The agent confirmed that as the custodial parent (kids with me 9 months of the year), I can claim EIC even though our divorce agreement lets my ex claim them as dependents in even-numbered years. The clarity from speaking directly with the IRS saved us from a huge argument and potentially filing incorrectly. I've already shared this with my divorce support group.

Just wanted to add that I've been a tax preparer for 11 years, and this is one of the most common misconceptions I see with divorced parents. The IRS distinguishes between "dependency" benefits (like the Child Tax Credit) and "custodial" benefits (like EIC and Head of Household). You must be the custodial parent (child lived with you more than half the year) to claim EIC, regardless of any divorce agreement. These agreements can legally transfer the dependency exemption and Child Tax Credit to the non-custodial parent, but cannot transfer EIC rights. If you're the custodial parent, you should: 1. List the child on your return 2. Indicate you're not claiming them as a dependent 3. Still claim EIC if you qualify based on income

Anyone know if this applies to ACTC (Additional Child Tax Credit) too? My tax software is giving me both EIC and ACTC even though my divorce decree says my ex claims our son this year.

This is exactly the kind of confusion that trips up so many divorced parents! Your tax software is actually correct - you CAN claim the Earned Income Credit even though your ex will be claiming the Child Tax Credit for your daughter. The key thing to understand is that the IRS treats these as completely different types of benefits. The EIC is what's called a "custodial benefit" - it goes to the parent the child actually lived with for more than half the year, regardless of any custody agreements about who claims the child as a dependent. Since your daughter lived with you for more than 6 months, you qualify for EIC based on your income. Your ex can still claim the Child Tax Credit because your custody agreement gives him the right to claim her as a dependent, but that doesn't affect your EIC eligibility at all. Make sure you keep good records showing your daughter lived with you for more than half the year (school records, medical records, etc.) in case the IRS ever questions it. But you're absolutely entitled to that EIC - don't leave money on the table because of bad advice!