How to Claim EITC and HOH With Divorced Taxpayers

This article provides steps on how to claim Earned Income Tax Credit and Head of Household when dealing with divorced taxpayers. These taxpayers have an option to split the dependency exemption from Head of Household (HOH) and Earned Income Tax Credit (EITC). The custodial parent claims HOH and EITC and the non-custodial parent claims the dependency exemption and Child Tax Credit. The custodial parent is the parent with whom the child had lived with for the greater part of the year.

1. Open the tax return to the Client Data screen.

2. Scroll down to the section entitled Non-Dependents claimed for EIC and Disabled person’s dependent care expenses.

3. In the Non-Dependents section, enter the non-dependents' First Name, Last Name, Birth date, SSN, Relationship and number of months lived in the taxpayer's home. Important Note: If the child lived with the taxpayer for more than half of the tax year but less than 7 months, enter "7" for months.

4. Enter an x in the first code box to carry the non-dependents' name and Social Security Number to the Head of Household fields on Form 1040/1040A.

5. After entering income on the tax return, double click Form 8867 in the "Forms Attached" pane to open Form 8867. 

6. Answer the on-screen questions to complete Form 8867.

For more information on Earned Income Tax Credit, see KB 38