Qualifying child or Qualifying relative?

[sfischer]

Taxpayer has a niece who lives with him all year, she does not work, so she will not be filing a tax return. The niece has 2 sons. They would be the taxpayers grand nephews. Can these grand nephews be qualifying children to the taxpayer or can they be qualifying realtives He has his own children he claims for HOH and makes too much money for EIC

[BP.]

Welcome sfischer. Check your TTB 3-15, as you didn't mention age of the nephews- a necessary factor in deciding your QC/QR question.

[sfischer]

age of grand nephews

the niece is 25 and her 2 sons are 1 and 3

[dtlee]

Taxpayer has a niece who lives with him all year, she does not work, so she will not be filing a tax return. The niece has 2 sons. They would be the taxpayers grand nephews. Can these grand nephews be qualifying children to the taxpayer or can they be qualifying realtives He has his own children he claims for HOH and makes too much money for EIC

I am not 100% sure what you are after, but based on what you posted, I think the answer is this:

The niece is too old to be a Qualifying Child. However, the niece may be considered a Qualifying Relative of the taxpayer.

The grand nephews are young enough and the right relationship to be Qualfiying Children of the taxpayer since the allowed relationships are brother, sister, or a descendant of one of them. The grand nephews cannot be Qualifying Relatives, since that is limited to a brother, a sister, or a son or daughter of one of them (in other words, not all "descendants")

[BP.]

The grand nephews cannot be Qualifying Relatives

Agree grand nephews appear to be QC's, but I don't think they aren't disqualified from QR status by relationship (they could meet TTB 3-15 QR test #4, bullet #5), rather it is QR test #5 that disqualifies them for QR status- ie they are taxpayer's QC's.

[dtlee]

Agree grand nephews appear to be QC's, but I don't think they aren't disqualified from QR status by relationship (they could meet TTB 3-15 QR test #4, bullet #5), rather it is QR test #5 that disqualifies them for QR status- ie they are taxpayer's QC's.

I agree. They have to live with them all year. I missed that when I was thinking about relatives who do not need to live with you. Thanks for catching it.

[OtisMozzetti]

Member of the Household All Year

[QUOTE=dtlee;73750The grand nephews cannot be Qualifying Relatives, since that is limited to a brother, a sister, or a son or daughter of one of them (in other words, not all "descendants")[/QUOTE]

Aside from the fact that the grand nephews are, as described earlier, suitable relatives as descendants of a brother or sister; the grand nephews are also persons who were members of the household all year. Not all Qualifying Relatives actually have to be any sort of relative so long as the prospective QR is a member of the household all year.