How does tax work with Head of Household?

[livinmybestlife]

This is for the state of Ohio.

Here is the language from our court order, "Mother and Father agree that they shall alternate claiming the minor child as a dependent on his/her federal and state income tax returns, with Mother claiming child in even numbered years and Father claiming child in odd numbered years. The parties shall take whatever action is necessary to enable the other to claim the child as a dependent for income tax purposes in accordance with the order of the court, including but not limited to executing any documents necessary including IRS Form 8332."

Last year was my year, so I didn't really look into it. Previously though, because she has always lived with me more than half the year, I was able to claim Head of Household, EIC and Childcare credits. This year is his year, but I think that some of the dependency things have changed. Based on the changes, are there changes in Head of Household, Child care credits, and EIC eligibility? Our daughter lives with me approximately 8 months out of the year. Her dad does pay support, and some of the daycare expenses. I am about to start a new job, and want to make sure that I am withholding enough out of my check.

 

[LdiJ]

This is for the state of Ohio.

Here is the language from our court order, "Mother and Father agree that they shall alternate claiming the minor child as a dependent on his/her federal and state income tax returns, with Mother claiming child in even numbered years and Father claiming child in odd numbered years. The parties shall take whatever action is necessary to enable the other to claim the child as a dependent for income tax purposes in accordance with the order of the court, including but not limited to executing any documents necessary including IRS Form 8332."

Last year was my year, so I didn't really look into it. Previously though, because she has always lived with me more than half the year, I was able to claim Head of Household, EIC and Childcare credits. This year is his year, but I think that some of the dependency things have changed. Based on the changes, are there changes in Head of Household, Child care credits, and EIC eligibility? Our daughter lives with me approximately 8 months out of the year. Her dad does pay support, and some of the daycare expenses. I am about to start a new job, and want to make sure that I am withholding enough out of my check.

Most of that did not change with the tax law changes. The only parent that can claim head of household, earned income credit and daycare credit is the parent with whom the child primarily lives. That is the IRS's definition of custodial parent, which will not necessarily be the same as the court orders. The other parent can only claim the child tax credit now, since the dependency exemption is gone.

 

[livinmybestlife]

Thank you for your response. I appreciate your time.

 

[LdiJ]

Thank you for your response. I appreciate your time.

I should also mention that the "custodial parent" may also claim those items even on the years that the other parent can claim the child tax credit. The custodial parent must simply mark the child as a head of household qualifier, rather than a dependent that year.

 

[livinmybestlife]

Thank you again. So assuming I have been filing correctly this whole time, I shouldn't have to really change anything going forward. I still fill out form 8332 for her Dad, and then go about filing head of household and the other credits for myself. Right?

 

[LdiJ]

Thank you again. So assuming I have been filing correctly this whole time, I shouldn't have to really change anything going forward. I still fill out form 8332 for her Dad, and then go about filing head of household and the other credits for myself. Right?

Everything but the child tax credit if your child is under 17 and everything but the education credit if the child is over 17 and in college.

 

[livinmybestlife]

Thank you very much for your time. I appreciate your help

 

[LdiJ]

Thank you very much for your time. I appreciate your help

You are welcome.