Who gets dependency and rest-a choice

[Unregistered-YES I WAS]

Mom becomes a Grandma on Oct 19, 2005. Daughter(and granddaughter) live with her for the entire year. Daughter's income is a W-2-for $9,335 and Daughter goes to summer school only for a couple of months.
What is Mom's Filing status?
What is daughter's?
Mom I assume can not take Daughter as a dependent, how about Grqandaughter.

[Unregistered_tried]

Sorry not enough coordination-finish to first

I tried to answer the telephone and cut short the question---

I think Granduaghter can be taken by either-just not both.. If daughter does not take then the earned income credit ist lost.? The small 1099T can be taken by daughter only.?

I can talk a little better than I type these questions. Mom's AGI is about $65,000.

Thanks

[Unregistered]

daughter can't be dependent

too much income. Granddaughter can't be grandmother's dependent, because she is her mother's qualifying child.

JoshInNC

[Unregistered]

The granddaughter is a Qualifying Child to both the mother and grandmother. Therefore, either one may claim the child for all benefits.

There is no Qualifying Relative situation here, so ignore the previous post where it said:
"Granddaughter can't be grandmother's dependent, because she is her mother's qualifying child." That is false.

[Unregistered]

Agree with the previous poster. In fact, there is an example in Pub 17, page 27, Example 1 which closely parallels your fact pattern and it notes that either mom or grandmom could take the grandaughter as a qualifying child & also whatever benefits flow from that.

New York Enrolled Agent

[Unregistered]

Thanks

EIC rules and Mom takes...

[Unregistered]

Notice 2006-86 has same example