Question

Question 15 (1 point) When there is no custodial parent, the parent with the least amount of AGI gets to claim the earned income credit for the qualifying child. 1) True 2) False

Answer 1

False,

The following are a few points to support the answer and give a clear picture as to who can claim the income credit of the child:-

The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the non-custodial parent.

Generally, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. However, the child will be treated as the qualifying child (for the purposes of claiming a dependency exemption and the child tax credit, but not for the earned income credit) of the noncustodial parent if all four of the following statements are true:

1. The parents:

a. are divorced or legally separated under a decree of divorce or separate maintenance,

b. are separated under a written separation agreement, or

c. lived apart at all times during the last 6 months of the year, whether or not they are or were married.

2. The child received over half of his or her support for the year from the parents.

3. The child is in the custody of one or both parents for more than half of the year.

4. The non-custodial parent attaches a Form 8332, or similar statement containing the same information required by the form, to his or her return. The form must be signed by the custodial parent.

If you are entitled to claim a dependency exemption for your child based on the exception for children of divorced, separated, or never married parents described above, you can claim the child tax credit for your child who was under age 17 at the end of the year.