Child Tax Credit Questions
This entry was posted on 2/21/2007 11:49 PM and is filed under uncategorized.
A rule of thumb for claiming the Child Tax Credit in divorce situations is that the credit follows the exemption. If you claim your child, you claim the credit. The IRS says that, who the child lives with, is not relevant. An approach I recommend, is to see which parent benefits most claiming the kids and their credits while following the IRS's rules, then fairly divide the tax savings. In adversarial situations, where one parent has improperly claimed the tax benefits related to their children, it is possible to get the IRS to eventually see the light, and in effect, go after the offending parent, and give credit to the offended parent. Patience and knowledge of the IRS rules is often required here.
Child Credit see Hot Topics EITC vs. CTC
