1040 pg 1 line 6c

[spanel]

I have a return with a taxpayer claiming a neice. I have a strong opinion that the box "Children on 6c who lived with you" should have a "1" in it.

My boss say the box "Dependents listed on 6c not entered above" will work as well.


Im my mind, I have seen a reject having to do with some type of child credit, I had to put a "1" in the first box. Am I losing my mind and/or whos right?

IRS doc would be very helpful!

Thank you in advance.

Chris

[MLINDER42]

1040 pg 1 line 6c

is the niece living with the taxpayer over 6 months?If so use 1.

[spanel]

12 months in home

Do you have a reason/pub that would reflect that?

[OtisMozzetti]

go look at definitions of dependents: QC or QR

My boss say the box "Dependents listed on 6c not entered above" will work as well.
...

If the niece being claimed as a dependent lived with the taxpayer(s) 6 months and a day or more, then that niece has a good chance of qualifying as a dependent on the basis of being a "qualifying child". That would satisfy the residency test. The relationship test is satisfied as a niece. There is also an age test, and the niece must not have paid more than half of her own support and must not be claimed by anyone else who has a stronger right to claim her.

Provided that the taxpayer(s) actually paid more than half of the niece's support, then the niece might qualify as a dependent even if she did not live with the taxpayer 6 months and a day or more as a "qualifying relative". Check the remaining requirements, one of which is that a QR must not be a QC. In that case, the niece would result in a "1" entered into the line entitled "dependents on 6c not entered above".

It would appear that the boss here may be aware of some uncertainty about whether or not the taxpayer(s) lived with the niece for 6 months and a day or more.

Note also that unless the taxpayer(s) lived with the niece for 6 months and a day or more there would be no possibility of claiming an EITC.

Much of this probably depends upon the questions and data entry into whatever if any software that is being used. If, on the other hand, you are filling out this tax return by hand on paper, that is another story.

[spanel]

Its by software. The niece lived in the home 12 months. Putting "1" in either box will still qualify for EIC.

He is saying just because they are a QC doesnt mean they are a "child" for that 6c computation.


chris

[erchess]

I looked

in the instructions to F 1040 and did not find an explicit answer to your dilemma. My own opinion is that "child" means "qualifying child whether or not your biological child" as opposed to "qualifying relative" which could be your biological child. However only you know how wise it is to push this boss. When I think a boss is telling me to do something that I think may be a mistake but am sure is not a crime I ask them to instruct me in writing and I retain a personal copy of the instruction in addition to placing one in the client file.

[RLymanC]

A Niece

That lived in your home for over six months qualifies a your QC if under the age of 19, and is qualified for both CTC & EIC and a exemption as a dependent provided no one else is in the household that could shoot you down

[Bees Knees]

A dependent can only be a qualifying child or a qualifying relative [IRC §152(a)]. A qualifying child is defined in Section 152(c)(2) as a child of the taxpayer or a descendant of such a child, or a brother, sister, stepbrother, or stepsister of the taxpayer or a descendant of any such relative (such as a grandchild, niece, or nephew).

Dependents are listed on line 6c of the 1040 for two purposes: (1) for purposes of claiming a dependent, (2) for purposes of claiming the child tax credit. The instructions for line 6c on page 17 of the Form 1040 instruction booklet only deal with the dependency rules and the child tax credit.

Thus, if a niece lived with the taxpayer and is considered a qualifying child for purposes of the dependency and child tax credit rules, the box "Children on 6c who lived with you" should include that niece.

[OtisMozzetti]

no EIC for child who didn't live with you more than 6 mos.

Putting "1" in either box will still qualify for EIC.

Definitely not so!

To qualify for EIC (the larger-amount version where there is a qualifying child), that child must meet a residency requirement, i.e. the child must have lived with the taxpayer(s) more than 6 months of the year, not counting temporary absences.

[spanel]

Sure it will.. at least in my software. You have a child that qualifies on all levels.. putting an 1 in either box will still get EIC.


Basically can anyone give me an IRS doc that says this?

Qualifying Child, put a 1 in "child who lives with you"
Qualifying Relative, put a 1 in "all other dependents"


Thanks

Chris




Quote:
Originally Posted by spanel
Putting "1" in either box will still qualify for EIC.

Definitely not so!

To qualify for EIC (the larger-amount version where there is a qualifying child), that child must meet a residency requirement, i.e. the child must have lived with the taxpayer(s) more than 6 months of the year, not counting temporary absences.

[OtisMozzetti]

The Tax Book explains about tax rules

Sure it will.. at least in my software. You have a child that qualifies on all levels.. putting an 1 in either box will still get EIC.


Basically can anyone give me an IRS doc that says this?

Qualifying Child, put a 1 in "child who lives with you"
Qualifying Relative, put a 1 in "all other dependents"

The Tax Book is an excellent reference which explains the rules for EIC and for claiming dependents in addition to other tax topics.

EIC is explained on pages TTB 11-7 to TTB 11-9; the rules for claiming dependents are explained on pages TTB 3-15 to TTB 3-19.

The rules for claiming EIC and for claiming dependents are also explained in IRS Publication #17.

It is important that all tax preparers who hold themselves out as providing service for a fee should have adequate education about the tax rules which are applied in the tax returns that they prepare.