Earned Income Credit

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  • Jeter2016
    Junior Member
    • Apr 2016
    • 27

    #1

    Earned Income Credit

    Taxpayer whose income is 28,000.00 has a daughter who was a fulltime student up to June of 2017.
    The daughter received social security in the amount of 6,600.00
    Earned income from two jobs 6,500.00
    Income on a 1099M from an Indian Tribe that she will be getting a stipend yearly from in the amount of 11,700.00.
    The taxpayer lives in a rental home that her mom owns and does not pay any rent so her annual cost are minimal.
    My question is seeing that the daughter has income of approximately 24,500.00, mothers support is minimal can the mother file the daughter as a dependent and take the EIC credit?
    Am I missing anything?
    Thanks,
  • taxmom34
    Senior Member
    • Nov 2008
    • 732

    #2
    it depends on the age of the daughter. was she 25 or older or younger. Just looking at the numbers without all info, I would say mom $28, 000 daughter $24,000 . did daughter put most of her income in bank?

    Comment

    • TAXNJ
      Senior Member
      • Jan 2007
      • 2106

      #3
      Curious when you....

      Originally posted by taxmom34
      it depends on the age of the daughter. was she 25 or older or younger. Just looking at the numbers without all info, I would say mom $28, 000 daughter $24,000 . did daughter put most of her income in bank?
      ask "did daughter put most of her income in bank?" What is the tax consequences if yes or no? Is that a requirement of EIC?
      Last edited by TAXNJ; 02-25-2018, 10:26 AM.
      Always cite your source for support to defend your opinion

      Comment

      • TAXNJ
        Senior Member
        • Jan 2007
        • 2106

        #4
        Question is....

        Originally posted by Jeter2016
        Taxpayer whose income is 28,000.00 has a daughter who was a fulltime student up to June of 2017.
        The daughter received social security in the amount of 6,600.00
        Earned income from two jobs 6,500.00
        Income on a 1099M from an Indian Tribe that she will be getting a stipend yearly from in the amount of 11,700.00.
        The taxpayer lives in a rental home that her mom owns and does not pay any rent so her annual cost are minimal.
        My question is seeing that the daughter has income of approximately 24,500.00, mothers support is minimal can the mother file the daughter as a dependent and take the EIC credit?
        Am I missing anything?
        Thanks,
        how are you treating the Indian Tribe stipend? Since you are in a better position to know the complete client issues, doe the following link help with some of the issue?

        Insights into types of nontaxable and treaty-sourced income distributions; the treatment of income derived from allotted land; and the tax implications of income derived from land that has been removed from trust.
        Always cite your source for support to defend your opinion

        Comment

        • BP.
          Senior Member
          • Oct 2005
          • 1750

          #5
          your EIC support test question

          Originally posted by Jeter2016
          My question . . . , mothers support is minimal can the mother . . . take the EIC credit?
          See TTB 11-9- They've written a plain answer about the support test & EIC.

          Comment

          • TAXNJ
            Senior Member
            • Jan 2007
            • 2106

            #6
            Excellent reference for scenario....

            Originally posted by BP.
            See TTB 11-9- They've written a plain answer about the support test & EIC.
            Still curious to understand poster Taxmom comment "did daughter put most of her income in bank?." and what if any is the tax consequences if yes or no?
            Always cite your source for support to defend your opinion

            Comment

            • taxmom34
              Senior Member
              • Nov 2008
              • 732

              #7
              if daughter put the money in bank it was not used for support, it is used to determine support

              Comment

              • TAXNJ
                Senior Member
                • Jan 2007
                • 2106

                #8
                Originally posted by taxmom34
                if daughter put the money in bank it was not used for support, it is used to determine support
                Thanks for the explanation. That's interesting. OP should reference TTB as reply poster BP suggests. Think that is the best solution to address the scenario.
                Always cite your source for support to defend your opinion

                Comment

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