Weird ATX message

[Black Bart]

Entered "stepchild" for relationship to claim EITC and error message pops up as "invalid relationship for EITC." Stepchild was okay for 2008 -- has it changed for 2009? Can't see why it would.

The 8667 is still a DRAFT, so no help there. EITC pubs aren't out and there's nothing online about this that I can find.

[Koss]

Stepchild

The definition of stepchild is:

The spouse's child.

The program is using the following logic:

In order to have a stepchild, you must have a spouse.

If you have a stepchild, you are married.

If you are married, you can't claim EIC unless your filing status is MFJ.

If your filing status if MFJ and you have a stepchild, then that child is your spouse's child.

Therefore, because it is a joint return, the proper way to identify the relationship is son or daughter, because the child is the biological child of either the taxpayer or the spouse.

BMK

[Roland Slugg]

Hmmmm .... Worked just fine for me. Check your answers to all the questions on the "EIC Questions" tab. Also check to see if the T/P actually qualifies for the EITC.

[Black Bart]

The definition of stepchild is:

The spouse's child.

The program is using the following logic:

In order to have a stepchild, you must have a spouse.

If you have a stepchild, you are married.

If you are married, you can't claim EIC unless your filing status is MFJ.

If your filing status if MFJ and you have a stepchild, then that child is your spouse's child.

Therefore, because it is a joint return, the proper way to identify the relationship is son or daughter, because the child is the biological child of either the taxpayer or the spouse.

BMK

Well, this guy's divorced, HH, and the ex-wife's kid stayed with him. It was my understanding that (IRS says) divorce does not dissolve that (stepchild) relationship. Not true?

[Dusty2004]

I agree with Black Bart

Marriage makes a step child your own child and divorce does not terminate a parent child relationship.

Dusty

[Koss]

Agree

You have what I think is a relatively unusual fact pattern there, Bart...

It is absolutely correct that the IRS instructions say that "relationships established by marriage are not treated as ending upon death or divorce."

But it's so rare that I'm not sure the software's algorithm can deal with it.

The same conundrum would appear if, say, a married couple was supporting the wife's disabled brother... and the wife dies... and the husband continues supporting the disabled brother. But it's not his brother; it's his brother-in-law, and the "in-law" part is not ended by the death of his wife.

So the brother-in-law should still be a qualifying child for EIC, and the guy would get HoH status.

But here again, in plain English, in most contexts, how the h**l can you have a brother-in-law if you're not married??

Maybe wait for an ATX update, or... file the return on paper, or...

put it down as his son, and be ready for the IRS notice.

One final thought:

Did the guy become the kid's legal guardian? If so, then the kid's his foster child. Placed in his home by the court that issued the order appointing him as guardian.

BMK

[Jesse]

And the seasons just begun..................................

Haven't come across that situation. The step parent would still need to be the legal guardian then, correct?

Unless other wise state does legal guardianship terminate at divorce? Would this be a state by state issue?

Burton you crack me up!

"But here again, in plain English, in most contexts, how the h**l can you have a brother-in-law if you're not married??"

[Koss]

Guardianship

No... I don't think the taxpayer needs to be the child's legal guardian.

The relationship of stepchild survives the divorce, and it is indeed a qualifying relationship under the rules for EIC.

But it is extremely rare. How many people can legitimately say, "I am not legally married but I have a stepchild"?

In plain English, it's not possible. Only under our convoluted tax code does this anomaly exist.

The tax software should be able to deal with it, but that may not be the case... It may require a manual workaround.

BMK

[David1980]

It's also interesting to note that stepchild is not a valid relationship for E-FIling. I wonder if that's where you're getting that error message from.

[Black Bart]

You have what I think is a relatively unusual fact pattern...so rare that I'm not sure the software's algorithm can deal with it.

I think that's probably it -- almost has to be 'cause ATX programming is usually not that "smart."

Maybe wait for an ATX update...

No go -- need it tomorrow and such an ATX update would require a wait until (1) Mossy Trumpet blows his horn (2) The 12th of never (3) The cows come home.

...or...file the return on paper...

Can't. He's already paid and I've already promised quick EF refund.

...put it down as his son, and be ready for the IRS notice...

Will probably do this; it's safest I think.

...Did the guy become the kid's legal guardian? If so, then the kid's his foster child...

Maybe. Calling tonight to check it out, but don't want to use "foster child" anyway unless compelled to since it begs the question ("Does he have papers?") and wages a flag at IRS. Risk is already high since he's a single dad and IRS is statistically leery of them actually having custody.

[RLymanC]

Step-Chid

If you qualify for HOH put son/daugher
If your married file MFJ put son/daughter

All tax programs should deal with that.

[Black Bart]

Thanks to all.

Y'all are the greatest.

P.S. Say Dusty -- Would you mind if I quoted you a few times on the title of your post ("I agree with Black Bart"? I don't get to hear it that much.