They live together and not married and had a child born to them in 2014. She claimed the child in 2014 and received large EIC. How should this be handled?
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If
If met the Qualifying Child test for purposes of the Earned Income Credit, Also, Qualifying child of more than one person. Special rules applyOriginally posted by zeros View Post
if the child is the qualifying child of more than one person.
If all conditions were met then spend the money unless not reading the post correctly.Always cite your source for support to defend your opinion -
Child is probably qualifying child of both parents. They can pick who will claim child. No splitting of benefits though - whoever claims child gets all benefits of claiming child and the other parent gets none.Comment
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The One Not Claiming Has the Higher Income
I thought the higher income person had to claim the EIC. Wrong?Originally posted by David1980 View PostComment
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Eic-tie breaker
1. Tie-breaker rules apply when parents or others eligible cannot agree.
2. See TTB Pp. 3-13, right column, bottom of page.
3. Might be an issue as to Head of Household Status.
4. The chart on Pp. 3-14, TTB, has some examples. Closest to your brief scenario is row 8 (and be sure to read footnote 5).Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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Not with parents - they can agree which will claim the child. If they can't agree then yes higher wins tie-breaker. Now if one of the people was not a parent and the parent had higher income that non-parent would be unable to claim the child. For example older daughter can't claim younger son as dependent if they both live with parents unless the daughter's AGI is higher than the parents.Originally posted by zeros View PostComment
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you are correctOriginally posted by zeros View PostBelieve nothing you have not personally researched and verified.Comment
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