Child Tax Credit & Credit for Other Dependents
24-2
Does the child have to be the taxpayer’s dependent?
To be a qualifying child for the child tax credit, the child must be the taxpayer’s dependent.
Are there special rules for children of divorced or separated parents or parents who live
apart?
There are special rules for children of divorced or separated parents, as well as for children of parents
who live apart. 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 noncustodial parent. In most cases, the qualifying child is
considered the dependent of the custodial parent. However, the noncustodial parent may be entitled to
claim the child tax credit and additional child tax credit for the qualifying child if the custodial parent provides
them with Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent,
or a similar statement. All noncustodial parents must attach Form 8332 or a similar statement to their return
each year the custodial parent provides the release. Review the Child Tax Credit charts in the Volunteer
Resource Guide, Tab G, Nonrefundable Credits for additional information.
Taxpayers with divorce decrees or divorce agreements executed after 2008 must use Form 8332 or a similar
statement whose only purpose is to release the custodial parent’s claim to the child tax credit. They cannot simply
substitute pages from the divorce decree.
Remember, a custodial parent’s release of the dependent child will also release the child tax credit and the
additional child tax credit, if either applies, to the noncustodial parent.
How do I determine taxpayer eligibility for the child tax credit?
To determine whether a child meets the criteria of a qualifying child for the child tax credit or additional
child tax credit, use the interview techniques and tools discussed in earlier lessons. Begin by reviewing and
completing the Marital Status and Household Information section of the taxpayer’s intake and interview
sheet. Verify that the child:
• Is under age 17 on December 31 of the tax year
• Lived with the taxpayer for more than six months of the year (remember the special rules for divorced or
separated parents or parents who live apart)
• Did not provide over half of his or her own support
• Meets the relationship criteria
• Is a U.S. citizen, U.S. national, or resident of the United States
• Has a valid Social Security number
The American Rescue Plan Act will include a qualifying child that turns age 17 in tax year 2021. For the credit
to be fully refundable, the taxpayer must have a principal place of abode in the United States for more than one half
of the taxable year or be a bona de resident of Puerto Rico for the taxable year. See the Temporary Provisions
lesson earlier for details.
example
Mary and Ralph got a divorce in 2015. They have one child together, Amy, who lives with Mary. All are U.S.
citizens and have SSNs. Mary and Ralph provide more than half of Amy’s support. Mary’s AGI is $31,000,
and Ralph’s AGI is $39,000. Amy is 12. The divorce decree does not state who can claim the child.
Ralph, the noncustodial parent, can claim the child tax credit only if Mary signs Form 8332. Mary can
still claim the earned income credit, Head of Household, and child and dependent care credit for Amy
assuming she qualies for them.