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Child and Dependent Care Credit
& Flexible Benefit Plans

This is archived information that pertains only to the 2002 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

My divorce decree states that my ex-spouse can claim our daughter as an exemption on alternate years. I am the custodial parent and pay child care expenses. Can I claim child care expenses on the years he takes the exemption?

The Child and Dependent Care Credit can only be claimed by the custodial parent. This is true even if you cannot claim the child's exemption because the divorce decree allows the other parent to claim the exemption, or you have released the exemption on Form 8332. Refer to Publication 503 (PDF), Child and Dependent Care Expenses, for a complete discussion.

References:

7.2 Child Care Credit/Other Credits: Child Tax Credit
Can a custodial parent claim the Child Tax Credit if the noncustodial parent claims the child as a dependent due to the divorce agreement?

The custodial parent cannot claim the Child Tax Credit for a child in the tax year that the noncustodial parent takes the exemption for that child. Please refer to the 1040 Instruction Booklet index for the Child Tax Credit. The referenced pages will explain who qualifies for this credit and how to calculate it.

References:

8.1 Earned Income Tax Credit: Qualifying Child Rules
If you are single with two children who lived with you all year, but are releasing the dependency exemption for one of your dependents via Form 8332, can both children still be considered qualifying children for Earned Income Credit purposes?

Yes, your child does not have to be your dependent to be a qualifying child unless he or she is married.

To determine if you qualify for the Earned Income Credit, please review the requirements in Publication 596 (PDF), Earned Income Credit.

References:

If the noncustodial parent receives permission from the custodial parent to claim a child on his or her tax return, is the noncustodial parent eligible for the Earned Income Credit?

The noncustodial parent cannot claim the Earned Income Credit on the basis of that child because the child did not live with that parent. The custodial parent may be able to claim the Earned Income Credit. A qualifying child for the Earned Income Credit does not need to be a dependent unless the child filing status is married.

Refer to Publication 596 (PDF), Earned Income Credit, for the Earned Income Credit rules.

References:

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