When both parents are eligible to claim a child and they file separately, what will determine who can claim the child as a qualifying child?

The determination of which parent can claim a child as a qualifying child for tax purposes in situations where both parents are eligible and file separately primarily hinges on the IRS tie-breaker rules. When both parents have identical eligibility, the rule that takes precedence is based on the adjusted gross income (AGI) of each parent.

Specifically, the IRS directs that if both parents are eligible to claim the same qualifying child, the parent with the higher AGI is typically entitled to claim the child. This approach helps in resolving disputes when both parents try to claim the same child, ensuring that the claim goes to the higher income earner, which is often presumed to represent a more significant benefit to the family's financial situation.

Understanding this rule is crucial because it can impact the tax benefits related to child credits, deductions, and the overall tax liability for the parents. This AGI-based decision mechanism is established to provide clarity and fairness in situations where multiple claims could arise.