EIC and Disabled Brother

[Harvey Lucas]

My client is 54 years old.

He cares for his 69 year old brother who is totally disabled.

My client earns about $22,000 per year on a W2.

In past years my client was entitled to earned income credit, got about $1900 of EIC in
2008.

I see that this year, 2009, they added yet another definition of "qualifying child", that being that the "child" must be younger than the taxpayer.

So with this new rule, my client is no longer eligible for the EIC.
He is coming in today for his tax appointment, I am sure he will be thrilled with this news.

Seems a little odd tho, ie, if an older brother cared for his disabled younger brother he would qualify for the EIC, but a younger brother caring for an older brother does not qualify.

I'm not sure I understand the reasoning behind this, but there are many things about tax law that seem to have little to do with reasoning.

Just venting.

Harvey Lucas

[BP.]

Granted we have the "younger than" rule now as part of the age test for QC, but looking at TTB 3-15, and pub 17, p. 246, doesn't the potential QC here meet the third bullet point of the age test- " OR Any age and disabled?"

[Harvey Lucas]

You are so right!

Thanks BP, you are so right.

Not sure how I missed that, I read it twice to be sure, guess I should have read it three times!

Harvey Lucas

[BP.]

Yaaay!! Good thing you "vented!"

[Larmil]

Thanks BP, you are so right.

Not sure how I missed that, I read it twice to be sure, guess I should have read it three times!

Harvey Lucas

How do you define totally disabled? I have always gone on the Sched. R definition but I have never been called on it, so I'm not sure. I have doctors statements in my files to support claiming dependents and also for the penalty exception for early withdrawals from retirement plans.

[Harvey Lucas]

Social Security Disability

If they are on Social Security Disability I think that is a safe bet as to them being totally disabled.

Another case I have, 35 year old dependent brother is terminally ill, not expected to live more than 12 months, cant work, too sick, not classified yet as "disabled" by social security only because they have not applied for it, in this case I think he meets the definition of totally disabled.

Other than that, I dont know what the IRS Texbook definition is.

Anyone?

Harvey Lucas