Can I claim both children on Earned Income credit?

My ex %26amp; I divorced in May 2007. We have 2 children. we each are claiming 1 on our W-4%26#039;s. We each are also claiming one child on the Child tax credit. Now if he makes over $32,000, he would get $0 back on the earned income credit. Am I able to claim both children on earned income credit if he makes over $32,000? Also, If he makes under $32,000 and can claim earned income credit but I would get more money if I claimed both children, can I claim both or does he have to use the earned income himself??

Can I claim both children on Earned Income credit?

In the absence of a court order (divorce decree), the custodial parent gets to claim the children unless a signed 8332 is filed with the non-custodial parent%26#039;s return.

Only the custodial parent can claim the Earned Income Credit regardless of who claimed the children on the tax return.

See page 46 of the 1040 instructions.

http://www.irs.gov/pub/irs-pdf/i1040.pdf

Can I claim both children on Earned Income credit?

you will have to abide by the divorce degree. The court has said how they can be claimed. So if the papers say he gets to claim one child - you can%26#039;t claim the child. Even though he doesn%26#039;t get the earned income credit he will still get a tax break for the child.

Can I claim both children on Earned Income credit?

The person who provided over half the support of the children can claim them both. The non-custodial parent can not claim them unless the custodial parent signs off on IRS Form 8332 or similar document. The court order is meaningless to IRS. To claim earned income credit you must file as married filing jointly or head of household.

Can I claim both children on Earned Income credit?

It is best to speak to a tax professional in the area where you live. When you file your tax returns you must use the name on your Social Security Card, if you do not, there will be problems with electronically filing your tax return. Make sure you have your children%26#039;s Social Security Cards when filing your tax return.

When your ex-husband files his tax return, make sure he has copies of your children%26#039;s Social Security Card and Form 8332 signed and dated. Form 8332 can be downloaded from the IRS Website and may have to be signed and dated by a notary of public.

I would suggest sitting down with a tax preparer prior to filling out Form 8332 before completing Form 8332.

You are the custodial parent, therefore you are eligible to claim the children for the EIC, head of household filing status (their are specific rules to claim this filing status), the credit for child and dependent care expenses, and the exclusion for dependent care benefits.

Your ex-husband is able to claim the children for the dependency exemption and child tax credit. Your ex-husband would have to attach a Form 8332 to his tax return.

There are special rules for divorced parents. I have included part of the Publication for you to read and a web-site explaining the Earned Income Credit.

The child(ren) received over half of his/her support for the year from the parents.

The child is in the custody of one or both parents for more than half of the year.

Either of the following statement is true.

The custodial parent signs Form 8332 or a substantialy similar statement that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches the form or statement to his or her reutn. If the divorce decress or separation agreement went into effect after 1984, the noncustodial parent can attach certain pages from the decree or agreement instead of Form 8332.

If a child is treated as the qualifying child of the noncustodial parent under the special rule for children of divorced or separated parents, only the noncustodial parent can claim an exemption and the child tax credit of the child. However, the noncustodial parent cannot claim the child as a qualifing child for the other tax benefits listed. Only the custodial parent or other eligible taxpayer can claim the child as qualifying child for those thax benefits.

Rules for the Earned Income Credit

Your adjusted gross income cannot be more than the limit.

You must have a valid social security number.

Your filing status cannot by %26quot;Married filing separtely%26quot;.

You must be a U.S. citizen or resident alien all year.

You cannot file Form 2555 or Form 2555-EZ.

Your investment income must be $2,800 or less.

You must have Earned Income from a job or self-employment.

Rules if you have a Qualifying Child

Your child(ren) must meet the relationship, age, and residency tests.

Your qualifying child cannot be used by more than one person to claim the EIC.

You cannot be a qualifying child of another person.

Your Adjusted Gross Income must be less than:

$36,348 if you have more than one qualifying child

$32,001 if you have one qualifying child

This credit is called the %26quot;earned income%26quot; credit because, to qualify, you must work and have earned income. If you are married an file a joint return, you meet this rule if at least one spouse works and has eanred income. If you are an emplyee, earned income includes all the taxable income you get from your employer.

You can choose which person will claim the EIC. If you and someone else have the same qualifying child, you ant the other person(s) can decide which or you, if otherwise eligible, will take all of the following tax benefits based on the qualifying child.

The child%26#039;s exemption.

The child tax credit.

head of household filing status (their are specific rules to claim this filing status)

The credit for child and dependent care expenses.

The exclusion for dependent care benefits.

The EIC.

The other person cannot take any of these six tax benefits unless he or she has a different qualifying child.