They lived with you all year and you are able to
claim the dependent care credit (for the child care you paid), earned income credit and head of household
filing status, even if you are not claiming them as a dependent because of a divorce decree. (See how to claim the credits even though the ex spouse may be claiming a child as a dependent.) The only support rule for claiming a child is that the child doesn't provide more than half of their own support.
For tax filing
purposes, having custody is not necessarily the same as it is for a divorce
decree. While a divorce decree can state that one parent has custody of a
child, the requirement for the IRS generally depends on which parent the child
lived with for the greater number of nights. One parent is going to live with the children more.
The non-custodial parent can never claim the Earned Income Credit, Head of Household filing status or the day care credit, based on that child , even when the custodial parent has released the exemption to him.
Only if the other parent is entitled to claim the child as a dependent:
Go to the Personal Info part of the program. When on the Personal Info Summary (see the screenshot below), you'll be able to edit or add a dependent from there. Answer all questions
Be sure to indicate that she lived with you at least 7 months ("I have her most of the time" rounds to 7 months). You will reach a screen where you indicate you are letting the other parent claim the child, as a dependent, this year.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.