Earned Income Tax Credit

No, the noncustodial parent may not claim a child as a qualifying child for the earned income credit based solely on the custodial parent's release of a claim to exemption for the child as their dependent.

• The custodial parent may still be able to claim the child as a qualifying child for the earned income credit if the residency test and all the other requirements are met.

Note: The custodial parent is generally the parent with whom the child lives for the greater number of nights during the year. The noncustodial parent is the other parent. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. For details and an exception for a parent who works at night, see Publication 501, Dependents, Standard Deduction and Filing Information.

• Publication 596, Earned Income Credit (EIC)
• Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent (PDF)
• Use the EITC Assistant

Generally, you don't always have to be entitled to claim the child as a dependent to claim the earned income credit (EIC) when your child meets the rules to be a qualifying child for the EIC, although there are some restrictions.

You may still be eligible to claim the EIC on behalf of the child when the reason you’re not entitled to claim the child as a dependent is that you’ve released a claim to a dependency exemption for the child under the special rule for divorced or separated parents or parents who live apart. Form 8332 may assign the dependent exemption and the child tax credit to the other parent, but it does not apply for the EIC.

When there is no other taxpayer who also meets the tests to claim the child as their dependent, you may be eligible to claim the EIC with a qualifying child when you meet all the tests to claim the EIC with a qualifying child. Your qualifying child must also meet the age, residency, and joint return tests. You may be eligible to claim the EIC with a qualifying child even when the dependent tests for support have not been met.

However, if your child also met the qualifying child tests to be the dependent of more than one person, tiebreaker rules may apply.

If your qualifying child was married at the end of your tax year, generally he or she can't be your qualifying child if they filed a joint return for the year unless that person and that person’s spouse file the joint return only to claim a refund of withholding or estimated tax paid.
 

• Use the EITC Assistant
• Publication 596, Earned Income Credit (EIC)

No, for purposes of calculating the earned income credit, child support isn't considered earned income.

Examples of items that aren't earned income include interest and dividends, pensions and annuities, Social Security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Don't include any of these items in your earned income.

• Publication 596, Earned Income Credit (EIC)
• Use the EITC Assistant

If they otherwise meet all of the requirements to claim the earned income credit (EIC), unmarried parents with a qualifying child may choose which parent will claim the qualifying child for the EIC.

• If there are two qualifying children, each parent may claim the credit based on one child.
• One parent may claim the credit based on both children.
• If both parents claim the same qualifying child for the EIC, but don't file a joint return together, the IRS will apply tie-breaker rules and treat the child as the qualifying child of the parent with whom the child lives for the longer amount of time in the tax year. If the child lives with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who has the higher adjusted gross income (AGI) for the tax year.

Although the parents may decide which of them will claim the qualifying child, in most cases they will not be able to divide all the tax benefits related to that qualifying child between them. These tax benefits include:  

• Child tax credit, credit for other dependents, or additional child credit.
• Head of household filing status.
• Credit for child and dependent care expenses.
• Exclusion for dependent care benefits.
• EIC.

If a child can be a qualifying child of more than one person, only one person can actually claim the child as a qualifying child to take each of these tax benefits, provided the person is eligible for it. The two parents cannot decide that either of them will claim the EIC separate from all the other benefits. The other parent usually can't take any of these tax benefits unless that other parent has a different qualifying child.

There are instances where neither parent can claim the child as a qualifying child, and some other person is entitled to claim the child as a qualifying child for purposes of the EIC. In instances where a child is a qualifying child of two or more taxpayers, a taxpayer who is not the child's parent may claim the child as a qualifying child for purposes of the EIC:

• If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the non-parent taxpayer who has the highest AGI for the tax year.
• If either or both of the parents can claim the child as a qualifying child but neither parent claims the child, the child is treated as the qualifying child of the nonparent taxpayer who has the highest AGI, but only if that non-parent taxpayer's AGI is higher than the AGI of either of the child's parents who can claim the child as a qualifying child.

• Publication 596, Earned Income Credit (EIC)
• Use the EITC Assistant
• Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent

Yes, if you meet the requirements, you may claim:

1. The Earned Income Credit

Generally, a child must live with you in the United States for more than half of the tax year to be a qualifying child. You may treat a child who was born alive or died in 2023 as having lived with you for more than half of 2023 if your main home was the child’s main home (or would have been) for more than half of the time he or she was alive in 2023. Whether your child was born alive depends on state law.

The earned income credit requires that you provide a valid social security number (SSN) for your qualifying child. If you meet all of the other requirements to claim this credit, and your child was born and died in 2023 and didn't have an SSN, instead of an SSN, you may enter "DIED" on line 2 of Schedule EIC (Form 1040), Earned Income Credit and attach a copy of the child's birth certificate, death certificate, or a hospital medical record showing a live birth. In addition, singles and couples who have SSNs can claim the credit, even if your children don't have SSNs. In this instance, you may be eligible for the earned income credit available to childless workers.

2. Dependency and/or Child Tax Credit  

Generally, the child must live with you for more than half of the tax year to be a qualifying child. You may treat a child who was born alive or died in 2023 as having lived with you for more than half of 2023 if your main home was (or would have been) the child's main home for more than half of the time he or she was alive in 2023. Whether your child was born alive depends on state law.

If you meet all of the other requirements to claim the child as a dependent, you usually must provide a taxpayer identifying number (TIN) for the child. If your child was born and died in 2023 and didn't have an SSN or other TIN, instead of a TIN, you may enter "DIED" in column 2 of the Dependents section of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors and attach a copy of the child's birth certificate, death certificate, or a hospital record showing a live birth.

The child tax credit requires that you provide a valid SSN for your qualifying child. If you meet all of the other requirements to claim this credit and your child was born and died in 2023 and didn’t have an SSN, instead of an SSN, you may enter “DIED” on column 2 of the Dependents section of Form 1040 or Form 1040-SR and attach a copy of the child’s birth certificate, death certificate or a hospital record showing a live birth.

• About Publication 501, Dependents, Standard Deduction, and Filing Information
• Publication 596, Earned Income Credit (EIC)
• Does my child/dependent qualify for the child tax credit or the credit for other dependents?
• Whom may I claim as a dependent?
• Use the EITC Assistant
• Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents