Can One Parent Claim EIC and the Other Child Tax Credit?

Yes, one parent can claim the Earned Income Credit while the other claims the Child Tax Credit on the same child, but only under a specific setup: the custodial parent keeps the EIC (it cannot be given away), and the custodial parent signs IRS Form 8332 releasing the dependency claim so the noncustodial parent can take the CTC. In 2026 the EIC is worth up to $8,231 for a family with three or more children, and the CTC is worth up to $2,200 per child, so splitting them correctly can be worth thousands.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 20262Internal Revenue Service. Child Tax Credit

First, Figure Out Which Parent Is Custodial

The split only works if you know who the IRS considers the custodial parent, and the answer has nothing to do with what your divorce decree calls legal custody. The IRS defines the custodial parent as the parent the child spent more nights with during the tax year.3Internal Revenue Service. Claiming a Child as a Dependent When Parents Are Divorced, Separated or Live Apart Physical overnights, counted one by one. The other parent is the noncustodial parent, full stop.

If the overnight count is exactly equal, the tiebreaker goes to the parent with the higher adjusted gross income for that year.4Internal Revenue Service. Publication 501 (2025), Dependents, Standard Deduction, and Filing Information That higher-earning parent becomes the custodial parent and holds the default claim to every child-related tax benefit.

Why the EIC Stays and the CTC Can Move

The Earned Income Credit has its own definition of a qualifying child written directly into the tax code, and that definition specifically ignores any release signed on Form 8332.5Office of the Law Revision Counsel. 26 U.S. Code 32 – Earned Income The EIC follows residency, and residency alone. Only the parent the child actually lived with for more than half the year can claim it.6Internal Revenue Service. Qualifying Child Rules No form, no court order, and no agreement between the parents can move the EIC to the other household.

The Child Tax Credit works differently. It rides on the general dependency rules, and federal law lets a custodial parent release the dependency claim to the noncustodial parent. The CTC travels along with that release. That single difference in how the two credits are defined is what makes the split possible.

How to Transfer the CTC With Form 8332

The custodial parent signs IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. The noncustodial parent then attaches the signed form (or a copy) to every tax return on which they claim the credit.7Internal Revenue Service. Form 8332 – Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent

The release can cover one specific tax year, several listed years, or all future years. With a valid release on file, the noncustodial parent can claim the full $2,200 CTC per qualifying child and, if their income is low enough, the refundable Additional Child Tax Credit of up to $1,700 per child.2Internal Revenue Service. Child Tax Credit Form 8332 also carries the $500 Credit for Other Dependents, which applies to dependents who don’t qualify for the CTC, such as a 17- or 18-year-old.7Internal Revenue Service. Form 8332 – Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent

A Divorce Decree Is Not a Substitute

If your divorce or separation agreement was finalized after 2008, it cannot stand in for Form 8332, no matter how clearly it awards the credit to the noncustodial parent. The IRS requires the actual form or a substantially similar written declaration signed by the custodial parent.7Internal Revenue Service. Form 8332 – Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Agreements executed between 1985 and 2008 can sometimes work if their language mirrors the form, but for anyone divorced more recently, the form itself is mandatory.

A judge can order the custodial parent to sign Form 8332, and refusing to comply may create problems in family court. But until that signature actually exists, the IRS will not let the noncustodial parent claim the credit.

What the Custodial Parent Keeps After Signing

Signing Form 8332 releases less than many custodial parents assume. Only the CTC and the related Credit for Other Dependents move. Several other benefits stay behind because they attach to the child living in the home, not to the dependency claim.

The noncustodial parent, in exchange for the signed release, gets the CTC and potentially the Credit for Other Dependents. Nothing more. They do not become eligible for Head of Household, the EIC, or the childcare credit through Form 8332.

Check the Income Limits Before You Split

Both credits phase out at higher incomes, and the split only makes sense if both parents actually qualify for what they plan to claim.

The EIC has tight income ceilings. For 2025, a single or Head of Household filer with three children needed AGI below roughly $61,555 for any EIC, and around $50,434 with one child.9Internal Revenue Service. Earned Income and Earned Income Tax Credit (EITC) Tables Investment income must be $11,950 or less. The 2026 thresholds move up slightly with inflation.

The CTC phases out more slowly. It drops $50 for every $1,000 of modified AGI above $200,000 for single and Head of Household filers, or $400,000 for married joint filers. Those thresholds aren’t indexed for inflation.

The math matters when deciding who claims what. If the noncustodial parent earns above $200,000, their CTC starts shrinking. If the custodial parent has enough tax liability to use the credit themselves, keeping it might produce a better total result for the family than transferring it. Run both versions before anyone signs.

Revoking a Release

A custodial parent who signed a release for future years can take it back using Part III of Form 8332.10Internal Revenue Service. About Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent The revocation cannot reach back into a tax year that has already passed; the earliest it takes effect is the tax year after it is signed. The custodial parent must make reasonable efforts to notify the noncustodial parent and must attach a copy of the revocation to their own return for every year they reclaim the child. A release that only covered a single year needs no revocation at all. It expires on its own.

If Both Parents Claim the Same Child

When two returns claim the same child, the IRS flags the duplicate and delays processing for both.3Internal Revenue Service. Claiming a Child as a Dependent When Parents Are Divorced, Separated or Live Apart The tiebreaker eventually resolves it: the parent with more overnights wins the EIC, and whoever holds a valid Form 8332 wins the CTC. The losing parent owes back the disallowed credits with interest, and sometimes penalties.

The bigger risk is the ban. If the IRS finds a claim was filed with reckless disregard of the rules, the taxpayer loses the EIC for two years. A fraudulent claim triggers a ten-year ban.5Office of the Law Revision Counsel. 26 U.S. Code 32 – Earned Income The same ban periods apply to the CTC. After a disallowed EIC, the IRS can also require you to prove eligibility with documentation before granting the credit in later years, which delays refunds for months.

Keep Records That Prove Where the Child Lived

In any dispute, the parent with documentation wins. The IRS accepts lease or mortgage papers listing household members, school enrollment records, medical records, childcare provider statements, and government benefit records showing the child’s address.11Internal Revenue Service. Supporting Documents to Prove the Child Tax Credit (CTC) and Credit for Other Dependents (ODC) A simple calendar log of which nights the child spent at each home, backed up by school attendance or medical visit dates, is far more persuasive than memory. Parents in close-to-equal custody arrangements are the most likely to face challenges, so a running record is worth keeping.

Noncustodial parents claiming the CTC should hold onto the signed Form 8332 permanently. The IRS can ask for it during an examination for any year the release covers, and reissuing a lost form requires the custodial parent’s cooperation years down the road.