Questions: If a non-custodial parent gets a signed Form 8832 from their child's other parent, which of the following tax breaks are they eligible to claim? head of household filing status, child tax credit/Additional child tax credit, earned income credit, or all of the above

If a non-custodial parent gets a signed Form 8832 from their child's other parent, which of the following tax breaks are they eligible to claim? head of household filing status, child tax credit/Additional child tax credit, earned income credit, or all of the above
Transcript text: If a non-custodial parent gets a signed Form 8832 from their child's other parent, which of the following tax breaks are they eligible to claim? head of household filing status, child tax credit/Additional child tax credit, earned income credit, or all of the above
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Solution

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The answer is: child tax credit/Additional child tax credit.

Explanation for each option:

  1. Head of household filing status: This filing status is generally available to a taxpayer who is unmarried and pays more than half the cost of keeping up a home for themselves and a qualifying person. The Form 8832, which is actually a form for entity classification election, seems to be a typographical error in the question. The correct form for releasing a claim to an exemption for a child is Form 8332. However, even with Form 8332, the non-custodial parent cannot claim head of household status because this status is based on the custodial parent's living situation.

  2. Child tax credit/Additional child tax credit: The non-custodial parent can claim the child tax credit if they have a signed Form 8332 from the custodial parent. This form allows the non-custodial parent to claim the child as a dependent for the purposes of the child tax credit.

  3. Earned income credit: The earned income credit is only available to the custodial parent, as it is based on the child living with the taxpayer for more than half the year. A signed Form 8332 does not transfer eligibility for the earned income credit to the non-custodial parent.

  4. All of the above: This option is incorrect because, as explained, the non-custodial parent cannot claim head of household status or the earned income credit with a signed Form 8332.

In summary, with a signed Form 8332, the non-custodial parent is eligible to claim the child tax credit/Additional child tax credit, but not the head of household filing status or the earned income credit.

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