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If you are the custodial parent, you can use Form 8332 to do the following. Release a claim to exemption for your child so that the noncustodial parent can claim an exemption for the child.
If you have a qualifying child for the Earned Income Credit (EIC), but do not claim that child as a dependent, you can still claim them for the EIC. You need to list the child in the dependent section of the TaxAct program as a nondependent, and select them for the EIC.
To be a qualifying child, the child must be your biological child, stepchild, foster child, sibling or stepsibling, or a descendent of any one of these, such as a grandchild or niece. As such, the fact that your ex is claiming the children doesn't disqualify him from doing so, as he is their stepfather.
If the custodial parent releases a claim to exemption for a child, the noncustodial parent may claim the child as a dependent and as a qualifying child for the child tax credit or credit for other dependents.
Can I claim older relatives or unrelated persons as dependents on my tax return? Yes, provided they meet the following requirements: The person can't be a qualifying child of another person. The person must be either related to you or must have lived with you all year as a member of your household.