Earned Income Credit

[Pacun]

Example 11. You, your 5-year-old son, and your son’s father lived together all year. You and your son’s father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Your earned income and AGI are $12,000, and your son’s father’s earned income and AGI are $14,000. Neither of you had any other income. Your son’s father agrees to let you treat the child as a qualifying child. This means, if your son’s father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed on page 16, you can claim him as a qualifying child for the EIC and any other tax benefits listed on page 16 for which you qualify.

Example 12. The facts are the same as in Example 11 except that you and your son’s father both claim your son as a qualifying child. In this case, only your son’s father will be allowed to treat your son as a qualifying child. This is because his AGI, $14,000, is more than your AGI, $12,000. You cannot claim the EIC (either with or without a qualifying child

The question was why she didn't qualify for EIC by herself if she was over 25 and under 65 if she made only $12,000.

I found my answer... it is interesting.

If you have a qualifying child. If you meet Rule 8, you have a qualifying child. If you

meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC

without a qualifying child.

[RitaB]

That IS interesting, and it's a small world. I have that situation on a return I just finished. If you had not posted this, I'd still be scratching my head, so thank you very much!

[Terry D EA]

Pacun that makes perfect sense to me when both tax payers are living under the same roof. The same applies that she (lower AGI) cannot claim HOH either. I have had a few clients try this and they get mad when I tell them they cannot.

The next scenario is when more than one taxpayer with dependent children live together and each have dependent children. The kids meet all the tests for EIC but, here is the question. Would each tax payer be able to claim HOH? I say yes if they can each prove they paid 1/2 of the upkeep of the home. One pays 1/2 and the other pays the other half. What do you think?

[Lion EA]

Then neither gets HoH. HoH goes to the one who pays more than half of the upkeep of a house for the taxpayer and a qualifying child.

[Pacun]

Pacun that makes perfect sense to me when both tax payers are living under the same roof. The same applies that she (lower AGI) cannot claim HOH either. I have had a few clients try this and they get mad when I tell them they cannot.

The next scenario is when more than one taxpayer with dependent children live together and each have dependent children. The kids meet all the tests for EIC but, here is the question. Would each tax payer be able to claim HOH? I say yes if they can each prove they paid 1/2 of the upkeep of the home. One pays 1/2 and the other pays the other half. What do you think?

For HOH you don't qualify by yourself and for EIC credit you can qualify by yourself. I think I will take the rule as it is because your reasoning doesn't help much.