Registered Tax Return Preparer RTRP Practice Exam

The qualifying child of divorced parents for tax purposes is indeed the custodial parent, even if the dependency exemption is waived. The custodial parent is typically the one with whom the child lives for the greater portion of the year. This parent has the primary responsibility for the child's care and upbringing, and under tax rules, they are generally granted the right to claim the child as a dependent.

This concept plays a critical role in determining eligibility for various tax benefits, such as the Child Tax Credit or the Earned Income Tax Credit. Even if the custodial parent agrees to waive the dependency exemption to allow the non-custodial parent to claim it, the custodial parent still retains the status as the qualifying child’s legal guardian for tax purposes.

In contrast, the other choices do not meet the criteria established by tax guidelines. The non-custodial parent does not have the primary care responsibility for the child, and while paying child support is important, it does not affect who qualifies as the custodial parent. Additionally, a child living independently does not allow them to be considered a qualifying child for either parent unless certain conditions are met that may not apply in typical scenarios. Thus, the custodial parent's status remains fundamental in determining tax implications related to