Two unmarried parents live apart. Their son lives with Mother all year. Father provides 60% of the son's total support and signs Form 8332 releasing the exemption to Mother. Who may claim the son as a qualifying child for the Earned Income Credit?
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AEither parent may claim the EIC; it is their choice.
BFather, because he signed Form 8332 transferring the dependency exemption.
CMother, because the son lived with her for more than half the year.
DNeither parent qualifies because they are unmarried and live apart.
✓ Correct answer: C. Mother, because the son lived with her for more than half the year.Form 8332 transfers the dependency exemption (and child tax credit) to the noncustodial parent, but it does NOT transfer the Earned Income Credit; the EIC is based on the residency test (qualifying child must live with the taxpayer more than half the year), so only the custodial parent — Mother — may claim the EIC.
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