Child Tax Credit for Divorced Parents — Who Gets the Credit?

Divorce doesn't cut the Child Tax Credit in half. One parent gets the full $2,000 per child — the other gets nothing. The IRS has clear rules about who wins, but those rules create real disputes every tax season.

Estimate your credit with the Child Tax Credit Calculator.

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The Basic Rule: Custodial Parent Claims

The custodial parent — defined as the parent the child lived with for the greater number of nights during the tax year — gets the CTC by default.

If nights are exactly equal (rare but possible), the tiebreaker goes to the parent with the higher adjusted gross income.

School nights generally count for the parent the child sleeps at, even if the other parent picks the child up after school.

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Form 8332 — Releasing the Claim

The custodial parent can voluntarily give the noncustodial parent the right to claim the CTC by signing Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent).

This is common when:

• The divorce agreement specifies alternating years
• The noncustodial parent is in a higher tax bracket and benefits more
• Parents negotiate it as part of the settlement

What Form 8332 transfers:

• Child Tax Credit (CTC)
• Other Dependent Credit (ODC)

What it does NOT transfer:

• Head of household filing status — stays with custodial parent
• Earned Income Tax Credit — stays with custodial parent
• Child and Dependent Care Credit — stays with custodial parent

So the noncustodial parent gets the CTC but can't file as head of household based on that child.

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What If Both Parents Claim the Same Child?

This happens more often than you'd think. The IRS will process whichever return arrives first and reject the second one electronically.

If your e-file gets rejected because someone already claimed your child:

1. Paper file your return — it will still be accepted
2. The IRS will send both parents a letter (CP87A)
3. You may need to prove custody (school records, medical records, lease showing address)
4. The parent who doesn't meet the rules will owe back the credit plus interest

Do not ignore the CP87A letter. Failing to respond means the IRS defaults to the other parent's claim.

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Common Custody Arrangements

Alternating Years

Many divorce decrees say: "Parent A claims in even years, Parent B in odd years." The IRS doesn't care about your divorce decree — it follows its own rules. To make alternating years work legally, the custodial parent must sign Form 8332 each year they're releasing the claim.

50/50 Custody With Multiple Children

If you have two children and true 50/50 custody:

• Some parents agree to each claim one child every year
• Others alternate all children year by year
• Either works, as long as the custodial parent signs Form 8332 for any child the noncustodial parent claims

Summer Custody Only

If your child lives with you only during summer (about 75 nights), you're the noncustodial parent. You cannot claim the CTC unless your ex signs Form 8332.

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State Differences

State tax credits for dependents follow different rules. Some states:

• Mirror the federal CTC rules exactly
• Have their own definition of custodial parent
• Don't accept Form 8332

Check your state's rules separately. The federal CTC and state child credits are independent.

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Practical Tips

• Get Form 8332 signed early. Don't wait until April to ask your ex. Include it in the annual tax planning conversation.
• Keep records. A log or calendar showing which parent had the child each night can resolve disputes.
• Review your divorce decree. It may specify who claims the CTC, but remember — you still need Form 8332 to actually execute it with the IRS.
• Don't assume your attorney handled it. Many divorce agreements mention tax credits without the proper IRS forms being signed.

Use the Federal Tax Calculator to see how the CTC affects your total tax liability in your filing situation.