Ask a CPA

There are many factors to clarify before you claim your child as a dependent. Generally a special rule favoring the custodial parent applies where divorced or separated parents together, provide more than half the child's support.
The custodial parent will meet the dependency support test even if she did not pay half the child's support.
The parents may arrange for the non-custodial parent to claim the child if IRS Form 8332 is signed by the custodial parent and supplied with the non-custodial parents tax return.
Form 8332 is a waiver of claiming the exemption and the exemption waiver can be used for that year only or for future years as well. Speak to your local CPA about the other criteria in claiming the child and about Form 8332.

A noncustodial parent does not lose the right to claim the child's medical expenses (health insurance, drs, dentists prescription drugs etc.) as an itemized deduction on IRS Schedule A (subject to the 10% or 7.5% AGI limitation)if both the custodial and noncustodial parent together provide more than half of the support of the child and either had custody for at least six months during the year.

You are allowed to exclude cancelled debt from gross income if it is qualified principal residence indebtness. Qualified principal residence indebtness is debt incurred in acquiring, constructing, or substantially improving your principal residence and which is secured by your principal residence. It also includes debt secured by your principal residence that refinances debt incurred in acquiring, constructing, or substantially improving your principal residence but only to the extent of such refinanced debt. The maximum exclusion is 2 Million or 1 million if filing separately.

You can claim the exclusion for qualified principal residence indebtness on Form 982 by checking the box on line 1e and entering the excludable amount on line 2. If you continue to own the residence you must reduce the basis on line 10b.

Form 1099-C is issued by banks, credit unions and federal government agencies that forgives or cancels a debt that you owe $600 or more. Generally the amount in box 2 must be reported as other income on Form 1040 line 21 unless one of the exclusions applies.

If debt on your credit card was cancelled, you must report the cancelled amount as income on Form 1040 line 21 unless you were insolvent immediately before the cancellation or the cancellation occurred in a Title 11 bankruptcy case.

If your lender agrees with a restructuring, workout that reduces the principal of your debt, the debt reduction is considered cancellation of debt and reportable as other income on Form 1040 line 21 and you may claim the principal residence exclusion.

Generally, the cancellation of student loans results in taxable income unless an exception exists. Certain exclusions exist for working in a certain geographic location, public service positions in government or charitable organizations, undeserved communities

Debt cancelled in a Title 11 bankruptcy case is not includable in your gross income if the cancellation is granted by the court or under a plan approved by the court. Certain losses, credits and basis of property must be reduced by the amounts excluded by cancellation of debt.

Generally you may deduct on Form 1040 Schedule A qualifying mortgage interest on up to 2 residences as well as premiums paid for mortgage insurance.
A residence may be a coop unit, condominium, mobile home, houseboat, that has cooking, sleeping and toilet facilities.
Interest on debt secured on more than 2 residences may still be deductible if you use the proceeds for investment or business purposes.