Question

Childcare and dependent deduction

Forum|Forum|5 years ago
January 27, 2021
2 replies
0 views

I as the custodial parent wants to claim childcare expenses only this year. The non custodial parent will claim child as dependent for child tax credit purposes.

In the 2020 Deluxe Desktop version, when I enter childcare expense, it ask me to add my child at that time. Then the $2000 child tax credit was applied. How can the two be separated so both parents get some tax benefits?

B

Bsch4477

Employee

If you are asking for the child care credit to be split the answer is that you cannot split it. The custodial parent, if they give the dependency and child tax credit to the non custodial parent, keeps the right to claim the child care credit, earned income credit and to file as head of household if otherwise qualified. Those credits cannot be split.

M

mcintclmAuthor

I'm not asking for the child care credit to be split.

I want to claim child and dependent CARE credit (daycare expense) this year as Head of household.

Other parent claims $2000 Child and other dependent Credit.

O

Opus 17

Employee

When you enter your child as a dependent, you must state that the child lived with you more than half the year (pick 7 months or longer, the program interprets 6 months as exactly half, which messes up some things). then you will be asked if you will be allowing the other parent to claim the child as a dependent via form 8332. Indicate yes. The child should be given a status in the program that allows you to qualify for head of household, EIC and the dependent care credit (assuming you meet the other qualifications for any of those benefits). And don't forget that you do need to give the other parent a signed form 8332 dependent release, unless the custody arrangement is included in a divorce order that was finalized before 2009.

M

mcintclmAuthor

Thanks, this is what I understood regarding IRS rules. Did not get the question about the other parent. Maybe starting a fresh return will help get past this.