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EIC ?


Eli

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17 year old is the only working member of the family. Family includes mom, 19 year old brother (student) and 10 year old sister and all live in the same house. The 17 year old earned a little over $8500 as a grocery stocker. Mother does not work and does not file a return. Can the 17 year old claim both the 19 year old and 10 year old for EIC? I think my brain is a litle foggy here.

Thanks!!

Eli

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Have you done a support worksheet on each of them? Remember, you need to also consider other sources of 'support', such as Hud subsidy, food stamps, SSI, etc, when looking at whether he provided over half the support.

The question was about EIC. There is no support requirement for EIC. Unless there is something else we don't know about, he qualifies for about $3,400 in EIC.

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The question was about EIC. There is no support requirement for EIC. Unless there is something else we don't know about, he qualifies for about $3,400 in EIC.

Thanks, KC & Don! I was thinking he could claim them as qualifying children, but wasn't real sure. Thanks again.

El

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I don't think he qualifies.

The 17 year old is the qualifying child of the mother and that disqualifies him from getting EIC.

It makes no difference if the mother files a return or not. He is still her qualifying child.

Edited to add: If he was 19, he would qualify because he would not be her qualifying child then.

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The question was about EIC. There is no support requirement for EIC. Unless there is something else we don't know about, he qualifies for about $3,400 in EIC.

"The qualifying child must meet the requirements under the uniform definition of qualifying child"

#4 -- Income -- child has not provided more than one-half of his or herown support during the year

This is directly from the instructions and Express Answers.

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"The qualifying child must meet the requirements under the uniform definition of qualifying child"

#4 -- Income -- child has not provided more than one-half of his or herown support during the year

This is directly from the instructions and Express Answers.

Would support also include the fair market value of the home (if owned)? If so this may increase the amount of support from the mother

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Would support also include the fair market value of the home (if owned)? If so this may increase the amount of support from the mother

I haven't looked this up in a while JB, but I don't think it's the FMV of the home, I think it's the FMV of the rental amount of the lodging. As always the numbers are blowing me away, we have a mom, a 19 year old, a 17 year old, and a ten year old, being supported on the 17 year old's $8500? Even if the home is "free and clear" where does the food, clothing, medical, gas (car), utilities, etc. all come from? lbb

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I haven't looked this up in a while JB, but I don't think it's the FMV of the home, I think it's the FMV of the rental amount of the lodging. As always the numbers are blowing me away, we have a mom, a 19 year old, a 17 year old, and a ten year old, being supported on the 17 year old's $8500? Even if the home is "free and clear" where does the food, clothing, medical, gas (car), utilities, etc. all come from? lbb

Thanks for all the replies. I was thinking that he could claim the siblings as qualifying kids for EIC only & not as dependents. I'll have to go back and check those rules again. As far as other income, I don't know what other income they might have.

Eli

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I haven't looked this up in a while JB, but I don't think it's the FMV of the home, I think it's the FMV of the rental amount of the lodging. As always the numbers are blowing me away, we have a mom, a 19 year old, a 17 year old, and a ten year old, being supported on the 17 year old's $8500? Even if the home is "free and clear" where does the food, clothing, medical, gas (car), utilities, etc. all come from? lbb

eci has different tests than dep. i have not confirmed the situation in my own mind, but doninusny & kc is a good indication.

the only real solution is work it out and prove it to yourself.

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http://www.irs.gov/irb/2008-02_IRB/ar14.html

this Revenue Bulletin will help decide if anyone can claim a child as a qualifying child or relative..

For purposes of section 152(d)(1)(D), an individual is not a qualifying child of “any other taxpayer” if the individual’s parent (or other person with respect to whom the individual is defined as a qualifying child) is not required by section 6012 to file an income tax return and (i) does not file an income tax return, or (ii) files an income tax return solely to obtain a refund of withheld income taxes.

Notice this....

This notice applies to taxable years beginning after December 31, 2004

Boy was I too strict. I may need to examine some of my client's returns!!

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