EIC Question

[JG EA]

In the special situations in TTB it mentions:

5-year-old child lives with mom and grandma.
• Grandma pays over ½ cost of home and has highest
AGI.
• Grandma provides over ½ child’s and mom’s support,
while dad provides no support.
• Mom is age 24 and makes less than the personal
exemption amount for the year.

As I understand the footnote, Grandma can take EIC if the Mom doesn't file.

I have a situation somewhat like this only my clients are MFJ who have been caring for the Mom (their sister) and her daughter (their niece).The sister made no money at all. My clients provided all support for 8 months of the year.They are taking their sister as a dependent. They also want to take the niece as a dependent and EIC etc. If I am OK so far:

My next question is the Dad who is still married to the Mom. If there is no question that he had the 6 month rule for his daughter - because in my client's home for 8 months - then I shouldn't worry about the Dad because his daughter can't be a QC to him right?

I mean the tiebreaker rules are only in effect if each had for 6 months correct? Or do I need still need to worry about the tie-breaker rules? Saying it another way the tiebreaker rules don't enter into the picture if Dad doesn't have a QC because no time in his home?

[RLymanC]

Jg

What did you say?

[S T]

Me Too

JG
I would like to answer your scenario, but I just was told of one that is so similar to yours it is almost scary.

TTB examples are Great, however, did you also try the CFS Tax Tools Flowcharts?

After I digest mine tonight in my sleep, and review TTB and CFS I might be able to answer with a clearer mind.

In the meantime, maybe Burton Koss will jump in - I am so glad he is back participating on the Board

Sandy

[JG EA]

Thanks for answering. Yes I used Tax Tools. But the question "Is the child a qualifying child of 2 or more taxpayers...?" stopped me to do more digging.

I know I didn't word the whole thing right so I guess that is my question: Is the child a qualifying child of 2 or more - or can only the person who had the child for over 6 months possibly have a QC.

Does just being a parent have weight over another relative having the child over 6 months?

[Gene V]

I would say the father can not take the child as his dependent unless the mother signs
form 8332. This is under the rules of Children of Divorced or Separated Parents
page 3-15 TTB.

A child will be treated as the qualifying child or qualifying relative
of his or her noncustodial parent (the parent with whom the
child lived for the lesser part of 2009) if all of the following apply.

1) The parents are divorced, legally separated, separated under a
written separation agreement, or lived apart at all times during
the last six months of 2009.
I take it they lived apart during the last six months

3) The child is in custody of one or both of the parents for more
than half of 2009.
which the child is

4) Either of the following applies:

a) The custodial parent signs Form 8332, or a substantially
similar statement, that he or she will not claim the child as
a dependent for 2009 and the noncustodial parent attaches
it to the return, or pre-1985 decree.

Seems like this would apply, if the husband wants to claim the child


I'm just looking at one thing at a time, I don't think the Tie breaker rules
come into play.

[Koss]

Residency Test

JG--

I agree with your original conclusion, that the father has no claim in this case. The child is not the qualifying child of the father because the child fails the residency test.

In theory, the father could assert that the child is his qualifying relative. But that claim would fail. The child can't be the qualifying relative of anybody, because the child is the qualifying child of another taxpayer.

I'm not trying to confuse the issue further. We're saying the same thing. The tie-breaker rules don't break a tie between qualifying child and qualifying relative. They only break a tie between two people who have the same qualifying child. On your fact pattern, there is no way the child could be the qualifying child of the father (except, as Gene pointed out, if the mother had signed an 8332).

BMK

[JG EA]

Thank you so much! When I rested on it a bit I was a little more sure he couldn't, but really, really appreciate the help Gene and Koss. And ST thanks for your request from others. It helped!

[Davc]

8332 DOES NOT APPLY.

You skipped #2 in the TTB list:

2) The child received over half of his or her support for 2009 from
the parents (without regard to the rules on multiple support
agreements). Support of a child received from a parent’s spouse
(stepmom or stepdad) is treated as provided by the parent.

[taxea]

TTB pag 3-16 has a clear example that fits to a tee. Grandma maybe...

With all the restrictions that the law has recently enacted my advise is that it would be prudent for the person claiming the child to have a signed F8832 from the parent who, if filing a return, would be claiming the child.

[Davc]

8832 is not applicable. Per OP Grandma provides more than 50% of the kids support. 8832 is only allowed if the total support provided by the parents ins more than 50%.