EIC and making work pay credit

[POCAHONTAS]

Taxpayer's income $2,432, has a daughter who lived with her all year, received welfare benefits all of 2009. No one can claim the daughter for 2009 for EIC or dependency.

Since more than 50% of the mother and daughter's support was paid by welfare,
can the mother still take her own dependency exemption and qualify for the making work pay credit?

Can the mother still claim the EIC credit for the daughter even though she cannot claim her as a dependent?

I think no to EIC but not sure on the Making Work Pay Credit

thanks

[taxmom34]

even if she can't get EIC for child, she would get it for herself if she is over 25 years old. and she would get some of the making work pay, it won't be the $400, but some

[Koss]

Age, Relationship, Residency & Support

Why can't she take her daughter as a qualifying child for EIC?

Her daughter appears to meet all the requirements.

For EIC, and even for the dependent exemption, for a qualifying child, the rule is that the child cannot provide more than half of her own support. The rules do not require that the parent provide any support.

Welfare benefits are considered support from the government. The child is not supporting herself.

Why wouldn't she be able to take her own exemption, and the MWPC?

Is there another individual that can claim your client as a dependent?

The fact that the government is supporting her with welfare benefits does not mean that she cannot claim her own exemption.

The rule says that she cannot claim her own exemption if she can be claimed as a dependent on another person's return.

The government agency that provided her welfare benefits cannot claim her as a dependent. The agency is not an individual.

BMK

[Koss]

Further thoughts

I think you are asking the wrong questions, or you are analyzing the facts from the wrong perspective.

The rules were very different prior to 2005. UDC changed things dramatically.

Under the current tax law...

The rules do not say:

"You can't claim your own exemption if you are not supporting yourself."

The rules say something very different. The rules say:

"You can't claim your own exemption if someone else can claim you as a dependent."

The rules do not say:

"You can't claim a person as a dependent unless you provided more than half of their support."

The rules say something very different. The rules say:

"You can't claim a person as a dependent if that person provided more than half of their own support."

- - - -

If something is a horse, then it is a mammal. This is an undisputed fact.

But just because something is a mammal doesn't mean that it's a horse. That's just not how this kind of rule works.

Unfortunately, the tax code contains a lot of these "one-way" rules. And that leads to a lot of confusion.

BMK

[POCAHONTAS]

thanks koss and tax mom

the confusion for me began when on page 11-8 TTB deluxe edition under qualifying child number 7

7) says "Is allowed to be claimed as a dependent of the taxpayer claiming the child tax credit and"

so I am thinking if the child does not qualify to be a dependent then cannot be claimed for EIC but then the last sentence says

The support test for dependents does not apply to EIC-- a child who meets all other requirements and provides more than half of his support can be a qualifying child for EIC.

So it seems at first it is saying you cannot claim for EIC if you can't claim for dependency then it seems to be saying that support does not apply and you can claim EIC.

but I see what koss is saying too
thanks for the clarification