Child Custody

• If the parents are living apart, the custodial parent or the parent with whom the child lived longest has the right to claim the child as a dependent. The non-custodial parent can claim the child as a deduction only if other parent executes IRS Form 8332 which releases all rights to claim child exemptions. The non-custodial parent submits the form with their tax return.
  
  

Parents Live Together

• If unmarried parents live together with the child the entire year and are filing separate returns, either parent can claim the child. The parents claiming the child deduction also receives any child tax credits, head of household filing status or earned income credits due. The parents cannot share or divide the various exemptions or credits.
  
  

Tiebreaker Rules

• If an unmarried couple cannot agree on who gets to claim their child as a deduction, IRS applies "tiebreaker" criteria. The IRS will apply the child exemption to the return of the parent who had custody longest. If both parents shared custody equally, IRS chooses the parent's return with the highest adjusted gross income---line 37 of page 1 of the Form 1040.