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Old 02-02-2015, 03:38 PM
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Earned Income Credit ~ Custodial Parent

There is a post here from a long time ago in which the person states:

"Federal law prohibits parents from "taking turns" claiming the EIC unless the child actually changes residence each year. When a non-custodial parent claims the EIC (for household with child), he or she runs the risk of severe penalties as well as the certainty of having to pay back all EIC amounts improperly received. A custodial parent who assists in this violation of the tax code also risks exposure to IRS penalties."


In my situation, my sons father and I alternate who takes him for spring break each year, so he is with me an extra 2 weeks one year and with dad and extra 2 weeks the next. In this circumstance is it ok that we take turns claiming the EIC because I file as the "Custodial Parent" one year and Dad does the next. According to the IRS the "Custodial Parent" is the one who has the child for more than 6 months, even if that means one of us has him for 190 days while the other has 175. Will the IRS care that the custodial parents switches from year to year?



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Old 02-02-2015, 09:13 PM
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Join Date: Oct 2010
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Quote:
Originally Posted by beautifuldays09 View Post
There is a post here from a long time ago in which the person states:

"Federal law prohibits parents from "taking turns" claiming the EIC unless the child actually changes residence each year. When a non-custodial parent claims the EIC (for household with child), he or she runs the risk of severe penalties as well as the certainty of having to pay back all EIC amounts improperly received. A custodial parent who assists in this violation of the tax code also risks exposure to IRS penalties."


In my situation, my sons father and I alternate who takes him for spring break each year, so he is with me an extra 2 weeks one year and with dad and extra 2 weeks the next. In this circumstance is it ok that we take turns claiming the EIC because I file as the "Custodial Parent" one year and Dad does the next. According to the IRS the "Custodial Parent" is the one who has the child for more than 6 months, even if that means one of us has him for 190 days while the other has 175. Will the IRS care that the custodial parents switches from year to year?
Iguess you need to go back into court to modify the court order aslongas the custodial parents switches from year to year. typically the parent who is primary responsible for the child's daily parenting needs is given primary custody of the child.

; basically, the EIC and childcare/ daycare credit ALWAYS remain with the custodial parent. These can never be given away and a court order can't overrule the IRS rules. A custodial parent is the parent who has either sole physical custody of the child or the parent with whom the child resides for a majority of the time. Although courts often give two parents who are both fit parents joint custody of the child, the court may refer to the parent with the larger timeshare with the child as a custodial parent at times in court documents and during hearings.



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