Does a 28 year old daughter with a child born 09/01/05 living with parents, earning $28,000 qualify for EIC? What wil be required to meet the support test to claim the child as a dependent?
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Dependency
In your case the granddaughter is the dependent of the mother unless the grandaughter provided more than 50% of her own support which I doubt. Granted the grandparents might be able to make a claim for the grandaughter's exemption but they would lose on the tie breaker. The exemption is rightfully the Daughter's. -
EIC... yes
Yes, this 28yo could claim her child for EIC purposes. Could also claim the dependency exemption for her child as long as child did not provide over half of his/her own support.Originally posted by Unregistered
Child is also likely the QC of the grandparents. Thus, depending on 28yo's parents tax situation, it may be better for the family as a whole if the grandparents take the dependency exemption & CTC & possible EIC there too. Calc it boys ways and see. Mark is correct though... if both 28-yo and her parents claim the young child, the 28-yo would win the tie-breakers. But, if they both agree, either could claim.
BillComment
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The 28 year old filing status will be singleEverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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Hoh
Most likely. But, it is _possible_ that the 28yo could be providing over 1/2 the costs of the household if the parents don't make much.Originally posted by BRIAN
BillComment
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I agree with you BIll, but the original thread asks what support test should she provide to claim her kid.
I figure if this is the question then her parents must be making a lot of money and they may want to claim their grandchild.
I am just reading between the linesEverybody should pay his income tax with a smile. I tried it, but they wanted cashComment
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Paying parent's room & board
What if the daughter is paying the parent's room & board and for watching the 3-month old while she works?Comment
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Then the parents have taxable income to report.Comment
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Original Question
While I agree with almost everything said by other members, I'm going to try to answer the original question.Originally posted by Unregistered
The fact that the taxpayer and her child were living with the taxpayer's parents does not in any way change the application of the support test.
The support test is not applicable to EIC. It is applicable only to the question of dependency. With respect to dependency, the taxpayer you describe may claim her child as a dependent if the child did not provide more than half of her own support. I join the others in assuming that a child born 09/01/05 did not provide more than half of her own support. The support test does not require that the taxpayer provide more than half the child's support; it requires only that the child not provide more than half.
Therefore, even if the taxpayer's parents provided 100% of the baby's support, the taxpayer may still claim the baby as a dependent. And her claim will prevail if her parents try to claim the baby also, because the parent always wins under the tiebreaker rules. She will also qualify for EIC.
I agree that she can choose to allow her parents to claim the child instead.
The baby is "a child who is a qualifying child of more than one person."
The IRS is taking the position that the benefits cannot be split. So if she allows her parents to claim the child as a dependent, she cannot claim the child for EIC. I don't see this anywhere in the text of the law, but it is clearly the IRS position as explained in Pub. 17.
BurtonBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process.Comment
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