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Peyton Clarke

Can both parents claim the same child on taxes if one is custodial parent?

I'm confused about claiming my daughter on our tax returns this year. My husband and I file separately, and I allowed him to claim our daughter as a dependent on his return. Now I'm working on my taxes, and the system is asking if I want to put her down as a custodial parent. I thought only one parent could claim a child? Does being the custodial parent mean something different than claiming her as a dependent? Has anyone dealt with this situation before? I don't want to mess up our returns or get flagged for an audit.

Vince Eh

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Tax advisor here. This is a common misunderstanding. You're right that only one parent can claim a child as a dependent for the Child Tax Credit. However, as the custodial parent, you may still be eligible for other benefits like Head of Household filing status, Earned Income Credit, and Child Care Credit depending on your situation. The tax software is asking because these other benefits are determined separately from who claims the child as a dependent. You should indicate that you are the custodial parent if you had physical custody of the child for more than half the year. This doesn't mean you're claiming her as a dependent - that's what your husband is doing. But it does potentially qualify you for those other tax benefits I mentioned even though you're not claiming her as a dependent. You might need to file Form 8332 to formally release the claim to your husband. The IRS has specific rules about split households and dependents that can be confusing.

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Thank you so much for clearing this up! I do have custody of her for most of the year, so I'll mark myself as the custodial parent. Should I still file the Form 8332 even though we already verbally agreed he could claim her?

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Vince Eh

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Yes, you should still file Form 8332. Verbal agreements aren't recognized by the IRS, so without the form, they'll automatically give the dependent claim to the custodial parent (you) if there's ever a question. The form makes your agreement official and prevents potential problems.

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This is why i hate taxes so much. So many forms and weird rules that normal people can't keep track of 😫

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Man, I wish I knew this last year. My ex and I got into a huge fight about this exact thing and ended up with the IRS questioning both our returns.

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Ezra Beard

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Sounds interesting. How exactly does it work? Does it just read your transcript or does it do more?

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Ezra Beard

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another tax service promising miracles... šŸ™„ what makes this one different from turbotax or whatever?

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Ezra Beard

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Aria Khan

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Aria Khan

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Aria Khan

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You and your husband need to coordinate on this. As others have said, only one of you can claim her as a dependent for tax credit purposes, but other benefits might still be available to you. My ex and I alternate years for claiming our son (we put it in our divorce decree) but I still got EIC as the custodial parent during his years.

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Melissa Lin

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Be careful here! I tried doing something similar and got audited because we didn't file the right forms to document our agreement. Make sure you have everything in writing and file Form 8332 if you're letting your spouse claim the child tax credit.

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omg this is so true. happened to my sister too. IRS don't play around with dependent claims! 😱

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Thanks for the warning. Definitely going to make sure I get that form filed correctly.

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Romeo Quest

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The IRS has specific rules about this. Only one person can claim the child for the Child Tax Credit, but the custodial parent (person who has the child more than 50% of the time) can still claim other credits like EIC and childcare expenses even if they don't claim the child as a dependent. So if you're the custodial parent, you should indicate that on your return, but make sure you understand which specific credits you're eligible for versus which ones your spouse will claim.

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Val Rossi

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just went thru this last year with my ex. MAKE SURE YOU FILE FORM 8332!!! this releases your claim to the dependency exemption but you can still claim head of household and earned income credit as the custodial parent. Without that form the IRS will automatically give YOU the claim and reject your husbands return since custody trumps everything else.

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Thanks for the advice! I'll definitely make sure to file that form. Is it something I can do through regular tax software?

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Val Rossi

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Yep most tax software has it. Just search for 8332 in whatever program ur using. Make sure you keep a copy for your records too!

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Eve Freeman

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I'm a tax preparer and I see this ALL the time. Here's the deal: • Only one parent can claim the Child Tax Credit for a specific child • The custodial parent (who the child lives with more than 50% of the time) is entitled to claim the child UNLESS they release their claim • To release your claim, you need to complete Form 8332 • Even after releasing the claim, the custodial parent can still claim: - Head of Household filing status - Earned Income Credit - Child and Dependent Care Credit - Exclusion for dependent care benefits So yes, you should indicate you're the custodial parent if that's true, but understand you're not claiming her as a dependent for the Child Tax Credit. I highly recommend checking out taxr.ai for personalized guidance - it breaks down these complex situations better than any other tool I've seen. https://taxr.ai

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This is so clear, thank you! I always thought it was all or nothing when it came to claiming kids.

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Caden Turner

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Wait so my ex has been claiming our kid for years but I've had custody... am I missing out on these other credits??

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Eve Freeman

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Yes, you very likely are missing out on credits you're entitled to! This is super common. If you're the custodial parent, you should be claiming HOH status and potentially EIC at minimum, regardless of who claims the child as a dependent.

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The link you shared (taxr.ai) actually worth checking out? I'm in a similar situation...

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Eve Freeman

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Absolutely. It helped one of my clients recover over $4,000 in missed credits from prior years that she didn't know she qualified for in a very similar situation. The automated guidance is surprisingly detailed for these specific tax situations.

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Harmony Love

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I was in the exact same situation and checked the "I'm the custodial parent" box. Still got my refund no problem and ex got his too with the dependent credit. The irs knows parents can be separated and have different situations. Your all good šŸ‘

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Rudy Cenizo

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Y'all making this sound way too complicated! Just talk to your husband and coordinate who's claiming what. If you have a written agreement about taxes make sure you follow it. If not, work it out and make sure you're both on the same page so nobody gets an audit.

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Natalie Khan

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as someone who just went through an audit over this exact issue... it IS complicated and 'just talking it out' doesn't satisfy the IRS requirements. They need specific forms.

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Daryl Bright

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As others have said - check custodial parent box if you had the kid more than half the year. It means you can still get some benefits even tho your spouse claims the child tax credit. Just be sure to complete and sign Form 8332 to allow him to claim the kid, otherwise the IRS computer system will flag the return when it sees the same child SSN on two different returns.

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Sienna Gomez

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i had the exact same question last year! turns out I could still file as head of household and get the earned income credit even though my ex claimed our daughter on his taxes. saved me like $2800!! def worth checking the custodial parent box if you have the kid more than half the time

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This is the answer right here ā¬†ļø You need to understand the difference between claiming a dependent and being a custodial parent.

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The tax software wont let you claim the child tax credit for her if you indicate your spouse is claiming her, but you can still get other benefits as the custodial parent. Its confusing but actually works out better financially for most couples this way.

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Kara Yoshida

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This whole thread has been super helpful! I'm dealing with a similar situation where my ex-wife and I share custody but she claims our son as a dependent. Reading through all these responses, I'm realizing I might be missing out on Head of Household status and other credits I'm entitled to as the custodial parent. Quick question for those who've been through this - does the IRS ever question why two parents from the same household are filing with different statuses? Like if I file as Head of Household and my wife files separately claiming our daughter as a dependent? I'm worried it might trigger some kind of red flag in their system even though it sounds like this is totally legitimate. Also seeing a lot of mentions of Form 8332 - is this something that needs to be filed every year or just once when you first make the agreement?

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