Was reading the qualifying child requirements for EIC for a client who made $10,000 wages and $4,000 eic (for tax year 2013) in 2014.
Her daughter is a college student and made $13,000 in wages. Daughter lived with client the whole year.
My first impulse was that client cannot claim daughter for EIC, but after reading rules for qualifying child, daughter qualifies to be claimed by parent for EIC. TTB states that "the support test for dependents does not apply for purposes of the EIC" and daughter meets all requirements for EIC. Sounds like daughter can even claim herself on her tax return, because support test does not have to be met by the parent.
As far as I can tell, the daughter could have an off-campus apartment in her name and pay all the utilities and such and if mother moved in with the daughter for more than half the year, the mother could get the EIC.
Does this blow anyone else's mind? Am I missing something here?
Her daughter is a college student and made $13,000 in wages. Daughter lived with client the whole year.
My first impulse was that client cannot claim daughter for EIC, but after reading rules for qualifying child, daughter qualifies to be claimed by parent for EIC. TTB states that "the support test for dependents does not apply for purposes of the EIC" and daughter meets all requirements for EIC. Sounds like daughter can even claim herself on her tax return, because support test does not have to be met by the parent.
As far as I can tell, the daughter could have an off-campus apartment in her name and pay all the utilities and such and if mother moved in with the daughter for more than half the year, the mother could get the EIC.
Does this blow anyone else's mind? Am I missing something here?
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