Have an unmarried couple with two children that they both produced and they live together. Male has about $28,000 income. Female's income about about $13,000 so she can claim EIC on herself. Can male file, claim daughters, take EIC on his return for the kids, and the female file her return and take EIC on herself? Seems like too much of good thing!
-
-
Yes. Since the children are qualifying children of both parents the parents can decide who will claim the children - so father can claim the children and get EIC on his $28,000 with two qualifying children. Mom can file on her own and will qualify for EIC for herself. Of course, the EIC for a single person claiming no qualifying children with $13,000 of income is only $101 so it's not a huge sum. -
Run it both ways to see which is more beneficial
The EIC would be about $2k more if she claims the kids and EIC as compared to having him claim the kids. I don't believe the person with highest income needs to claim the kids as long as they agree. She would have to file single with 2 dependents, not HH as presumably he provided more than half the cost of maintaining the home. Or if she claims the kids, maybe his additional tax liability would exceed the benefit of her receiving more EIC. Try it both ways and see how it works out...as long as they agree that they want the best overall tax situation and don't care how the money is split up between them.Comment
-
No, the other person can't take the EIC. (Though they can choose which of them will claim the kids and the associated benefits.)Originally posted by Jill Graff View Post
It's disallowed because you have a qualifying child of more than one person.
Here's the rule; see the bottom of the page.
Also covered in the instructions for line 13c.
Last edited by BP.; 07-23-2014, 10:17 PM.Comment
Comment