Divorce Decree

• If you are divorced, check the divorce orders for information regarding who is entitled to claim the child. Some parents with joint custody agree to alternate claiming the child each year. A parent with sole custody has the right to claim the children or sign away the exemption to the noncustodial parent.
  
  

Residence

• According to the Internal Revenue Service, the parent who is entitled to claim the child is the one with whom the child spends the most nights during the year. Problems arise when the a parent works the night shirt. In this case, the custodial parent is whoever the child spends the most days with in the year. The address registered with the child's school is often classified as the primary residence.
  
  

Support

• You must provide more than 50 percent of the costs of raising the child during the year to receive the deduction. If the child provides more than half his support, neither parent is entitled to claim the child, regardless of child support, custody or age.
  
  

Tie-Breaker

• If parents do not agree and both claim the child as a dependent in the same tax year, the IRS will use a tie-breaker test to determine who has the legal right to claim the child. The IRS will look at who the child lived with for the longest time in the year. If the child spent equal time with parents, the parent with the highest adjustable gross income will receive the deductions.