Sibling claiming brother/sister

[Brian EA]

Can a sibling claim a brother or sister if the parents are unable to claim the full exemption because of too much income?
In doing so the older child can claim the younger child as a dependent and qualify for the child tax credit and earned income credit. The older child have some earned income.


brian

[sea-tax]

Can a sibling claim a brother or sister if the parents are unable to claim the full exemption because of too much income?
In doing so the older child can claim the younger child as a dependent and qualify for the child tax credit and earned income credit. The older child have some earned income.


brian

More likely than not no! Probably the parents are the ones that had custody of the child and provided the support . You need to go through the dependancy worksheet and see what happens. Just because one person who is entitled to claim chooses not to it does not give the right to another.

[New York Enrolled Agent]

Brian - you need to give more facts. If the younger child is a Qualifying Child of the older sibling then it can be done.

[newbie]

At a recent seminar one example was high income parents w/ a couple of children. Because of the high income it was more beneficial for the son to claim the sister and also qualified him for EIC. I don't remember all the details so walk down the rules for qualifying child/relative one by one and your answer might be yes! might be no?

[Brian EA]

Brian - you need to give more facts. If the younger child is a Qualifying Child of the older sibling then it can be done.

Parents make too much money. Their exemptions are phased out. Son is 17 years old and earned &15000. His sister is 8 years old.They all live in the same household.That makes the sister the Qualifying Child of the brother.I think he can take the exemptions and credits

brian

[sea-tax]

Parents make too much money. Their exemptions are phased out. Son is 17 years old and earned &15000. His sister is 8 years old.They all live in the same household.That makes the sister the Qualifying Child of the brother.I think he can take the exemptions and credits

brian

Correct me if I am wrong but is not support still a test that needs to be met. If they all lived in the same house how can the son provide more support than the parents?
Also I think if the parents can claim the child but choose not to does that not invalidate the sons claim. I thought because the kid also could be claimed by parents it basically invalidates the sisters claim.

[Unregistered]

The support test for a qualifying child only says that the child cannot have provided over half of his/her support during the tax year.

[New York Enrolled Agent]

Sea-tax
Remember under the new rules for qualifying child, the support test goes in a different direction. As long as the q.c. doesn't provide more than half hi/her support, the support test is satisfied. Different test for a qualifying relative.

[sea-tax]

The support test for a qualifying child only says that the child cannot have provided over half of his/her support during the tax year.

I just read the pub and you are correct . But does not the fact that the parents could claim the child make it so that the brother can't

[Brian EA]

The support test for a qualifying child only says that the child cannot have provided over half of his/her support during the tax year.

I think this is the answer.

brian

[sea-tax]

Sea-tax
Remember under the new rules for qualifying child, the support test goes in a different direction. As long as the q.c. doesn't provide more than half hi/her support, the support test is satisfied. Different test for a qualifying relative.

NY EA what about the comment I wrote to UR?

[sea-tax]

Also I thought because the child qualifies for both the parents and the sister is not the tie breaker the person with the highest agi or is that just for divorced parents.

[jainen]

>>does not the fact that the parents could claim the child make it so that the brother can't<<

Why not ask if the fact that the brother can claim the child make it so that the parents can't?

>>is not the tie breaker the person with the highest agi<<

Tie breaker only applies if the parents AND the brother claim him. Some people say this is an unintended loophole in the new law. I maintain that it is a deliberate tax break for high income families that has been in the law since 2002, long before the new dependency rules.

[sea-tax]

>>does not the fact that the parents could claim the child make it so that the brother can't<<

Why not ask if the fact that the brother can claim the child make it so that the parents can't?

>>is not the tie breaker the person with the highest agi<<

Tie breaker only applies if the parents AND the brother claim him. Some people say this is an unintended loophole in the new law. I maintain that it is a deliberate tax break for high income families that has been in the law since 2002, long before the new dependency rules.

Jainen I have never had this question posed to me and honestly never pondered it.
From what you all say I guess he can claim the sister . So I can admit when I am wrong and so I am wrong ! So Brian claim away!

[jainen]

wealthy families

Earlier this year business and tax magazines reported this as a new way for wealthy families to claim EIC, which some people thought was unfair. Congress took note and pretended to write a couple of restrictions into the 2007 budget (effective 10/1/06).

>> an individual can only be a qualifying child of somebody older than herself

>> if a child lives with a parent and other relatives, only the parent can claim the child

But as you know, the do-nothing Republican Congress adjourned without ever getting around to actually passing the budget, so these new rules never happened. I'm not sure how the Republicans think government can operate without a budget but the Democrats said yesterday that it's not their problem--they didn't make it and they aren't going to solve it. What do you think of that?

Meanwhile it's worth a cool billion in EIC benefits currently being paid to wealthy families.