If you were divorced, legally separated, or lived apart from your spouse during the last six months of the year, you may be able to take the credit or the exclusion even if you cannot claim your child as your dependent. If your child is not your dependent, he or she can still be a qualifying person, but only if all five of the following apply:
You are divorced or separated under a decree of divorce or separate maintenance, or a written separation agreement, or you lived apart from the other parent during the last six months of the year.
One or both parents had custody of the child for more than half the year.
One or both parents provided over half the child’s support.
The child was under age 13 or was physically or mentally unable to take care of himself or herself.
The custodial parent agreed not to claim the exemption for the child. This is done by signing Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, or a similar statement. Or, the non-custodial parent provided more than $600 for the child’s support and can claim the exemption under a pre-1985 decree of divorce or separate maintenance, or written agreement.
If you meet all of the above tests (that is, the exception applies) you can treat your child as a qualifying person if you have custody, even if you cannot claim the exemption for your child. For these purposes, you are considered to be the custodial parent if you have custody of the child longer than the other parent has custody. If you are the non-custodial parent, the child is not considered a qualifying person for you, even if you can claim the child as a dependent on your tax return.