Who Gets-is She Qualifying Child

[JON]

22 year old daughter with a three your old son gets married December 2005. She is a full time student,maybe> Her income consists of W-2-$2140.60, dividends $146 and a stock gain of $5430 (proceeds $13,300 cost $7900). Her Dad took her and the grandson as exemptions in 2004. In 2005 her husband has a W-2 of $22,000-if I file joint the EIC kicks in unless I say she is a qualifing child of DAD. If she used all her income for support does she move out of the qualifing child status. Tuition was $2973-I think daughter's Dad had a play in support. She lived at home part of the time, but probably more with the husband in 2005. New husband is not the father of the child and she receives no support from the father. If she is not a full time student what changes.

Thank you.

[Brian EA]

22 year old daughter with a three your old son gets married December 2005. She is a full time student,maybe> Her income consists of W-2-$2140.60, dividends $146 and a stock gain of $5430 (proceeds $13,300 cost $7900). Her Dad took her and the grandson as exemptions in 2004. In 2005 her husband has a W-2 of $22,000-if I file joint the EIC kicks in unless I say she is a qualifing child of DAD. If she used all her income for support does she move out of the qualifing child status. Tuition was $2973-I think daughter's Dad had a play in support. She lived at home part of the time, but probably more with the husband in 2005. New husband is not the father of the child and she receives no support from the father. If she is not a full time student what changes.

Thank you.

There ar 2 situations here.
She can file jointly with her husband, claim the EIC and education credit.

She can file MFS and at the same time being claimed as a dependent by her father. Both she and her kid are qualifying children of her father. Provided her dad provide over 50% of her support. Her dad then gets to claim the education credit.

[Bill Tubbs]

QC of her father?

Both she and her kid are qualifying children of her father.

She lived at home part of the time, but probably more with the husband in 2005.

That (she lived more with her husband in 2005 than with her father) tends to imply she lived with hubby more than half the year and lived with daddy less than half (unless they all spent some time together under the same roof). With that presumed, she and her kid cannot be QC of her father. Her kid would then be QC of her & her husband. She could still be a QR of her father, but her kid cannot be a QR of her father as that kid is a QC of her husband.

[Brian EA]

That (she lived more with her husband in 2005 than with her father) tends to imply she lived with hubby more than half the year and lived with daddy less than half (unless they all spent some time together under the same roof). With that presumed, she and her kid cannot be QC of her father. Her kid would then be QC of her & her husband. She could still be a QR of her father, but her kid cannot be a QR of her father as that kid is a QC of her husband.

Thanks Bill but I was basing on the fact that she got married in dec 2005

[Bill Tubbs]

Marriage

Thanks Bill but I was basing on the fact that she got married in dec 2005

I had to read it a couple times before I caught the 'she lived with him more than dad' part. Of course, that doesn't necessarily mean that she lived with hubby more than half the year (so I jumped a bit too fast too) -- she could have lived by herself for a while too -- perhaps moved out from dad's in March, lived by herself Mar to Aug, then moved in with boyfriend in Aug, and got married in Dec.

As they say, the devil is in the details.

Bill

[JON]

I am a rookie

they did not quailfy for EIC anyway. Next year I will announce I am not doing clients grown children, unless they are very successful and want to be charged a lot for the income tax returns.

Thank you...

[Brian EA]

they did not quailfy for EIC anyway. Next year I will announce I am not doing clients grown children, unless they are very successful and want to be charged a lot for the income tax returns.

Thank you...

No EIC . Investment income high. Thanks Bill

[Bill Tubbs]

Investment income

What do you mean that they do not qualify for EIC. If she files with her husband she qualifies for EIC

"Her income consists ... stock gain of $5430"

Investment income is over $2700...

Bill