Separate Returns

2.2 Filing Requirements/Status/Dependents/Exemptions: Filing Status

If the parents of a 2-year child never married but live together with the child for the tax year, and both contribute to the cost of maintaining the household for the child and themselves, may they both file as head of household?

Only one taxpayer may claim the child as a qualifying child for purposes of filing as head of household. Also, a taxpayer filing as head of household must furnish over half the cost of maintaining the household. Therefore, both parents may not file as head of household.

2.3 Filing Requirements/Status/Dependents/Exemptions: Dependents & Exemptions

My wife and I are married filing separately. We have one son and we meet all of the dependency exemption tests. We contributed an equal amount to our son's support and want to know if we both can claim him on our separate returns?

A dependency exemption may only be claimed on one return. Since your son is a qualifying child for both of you, you and your wife can decide who will claim the child. If you cannot agree on who will claim him refer to Tie-Breaker Rule in Publication 501.

My husband and I were separated the last 11 months of the year and our two children lived with me. My husband provided all the financial support. Who can claim the children as dependents on the tax return?

Since your children lived with you for the greater part of the year, you are considered the custodial parent and you are the parent who is eligible to claim them as dependents on your tax return if the other dependency tests are met. Your husband is the noncustodial parent and would only be able to claim the children if you release your claim to the exemption by completing Form 8332 (PDF), Release of Claim to Exemption for Child of Divorced or Separated Parents, or signing a substantially similar statement. Please be aware that if you release your claim to the dependency exemption for a child, you may not claim a Child Tax Credit for that child.

8.1 Earned Income Tax Credit: Qualifying Child Rules

My wife and I have two children and we are going to file separate returns this year. Can we each claim one child for the earned income credit?

In order to qualify for the earned income credit, your filing status cannot be married filing separately. If you are married, you usually must file a joint return to claim the earned income credit.

However, if you are married and your spouse did not live in your home at any time during the last 6 months of the year, you may be able to file as head of household. In that case, you may be able to claim the earned income credit.

8.3 Earned Income Tax Credit: Other EITC Issues

If both parents want to claim the earned income credit, who is entitled to it if there was no marriage?

If the child is a qualifying child of both parents, they may choose which one will claim the credit. If there are two qualifying children, each parent may claim the credit on the basis of one of the children or one parent may claim the credit with both children. If both actually claim the credit on the basis of the same child or children, the parent who is entitled to the credit is the parent with whom the child lived for the longest period of time during the tax year, or the parent with the higher adjusted gross income (AGI) if the child lived with each parent for the same amount of time during the year.