for EIC purposes the law says the qualifying child has to be under age 19 at the end of the year or under 24 and a student. now, am I right to assume student includes being a high school student? my client's son was 19 as of 12/31/2012. he finished high school in may of 2012(full time student for first half of the year). assuming he meets all other criteria, could the parents claim him for eic?
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Definition from Pub 17
Student defined. To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year:
A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or
A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency.
The 5 calendar months do not have to be consecutive.
Full-time student. A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance.
School defined. A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school.
I can't imagine a different definition for EIC??
Mike -
as far as the dependent exemption
goes, so does he qualify as a dependent? the facts are:
his parents income 25000
q-child w2 14000
lived with parents, where monthly expenses for the house is around 3,000 so the q-child's portion would be 1000. that would be 12,000 a year which is more than 50 percent of what the child made. 14,000 vs 12,000.
and ofcourse the student fact are the same as mentioned before.
thanks,Comment
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So, lets check the requirements:
Relationship - Yes
Residence - Yes
Age - under 24 full-time student (5 months qualify) - Yes
Support - did not provide over 1/2 his support for the year - ??
Dependent Cost:
Shelter = 36,000 / 3 = 12,000
Food
Clothing
Medical
Student provided 14,000
You better fill in the blanks (Food, clothing, education etc) And remember - If the student did not spend the money for his support (maybe put it in the bank savings) don't count it.
Here's a worksheet:
MikeComment
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Running the numbers
I wouldn't be surprised if he doesn't qualify.
The total shelter (must use FMV of rent not mortgage costs) + food maybe $50,000 tops?? divide by 3 people = 15,000.
Child's expenses = 15,000 + clothing, edu (high school), medical (if any) = maybe $20,000 at a stretch!
One half of the child's support costs = 10,000 and he made 14,000.
Unless you show he didn't spend $4,000 on his support, don't think he's a dependent.
Maybe he contributed a bunch to the household expenses? say 9,000 / 3 would mean his contribution to his support is 8,000 (14,000 - 9,000 + 3,000)
MikeComment
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There is no support test for EIC.Comment
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As Gary indicates ... whether or not the parents provided over 50 percent of the support is irrelevant. If the child was a FT student and lived at home for more than 6 months he would be a qualifying child for the EITC. Based on the original post it would appear that he would not qualify as a dependent for the exemption.
ardi600 ... your method of figuring for the support test is flawed.Comment
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