EIC for disabled Sister

[RLymanC]

Sisters live togeather
Sister A has 22,000 income
Sister B is reqiured to file taxes due to deseased husband pension income and she also receives social security disablity payment.

Sister B is totally and permantly disabled.

Can Sister A use her for EIC purposes only?
Sister A also has a nephew she supports so will be filing HOH
Sister B files as single and claimes herself.

[DaveO]

How much income does the disabled sister have?

It would seem that if she has enough to require a tax return she would be providing over half of her own support. Especially in light of the fact the other sister only has $22K of income I would guess the disabled sister is in fact, providing more than half her own support. Without knowing the support numbers I would say no.

[Larmil]

Support requirement not applicable

It would seem that if she has enough to require a tax return she would be providing over half of her own support. Especially in light of the fact the other sister only has $22K of income I would guess the disabled sister is in fact, providing more than half her own support. Without knowing the support numbers I would say no.

For purposes of EIC the support requirement does not apply. I do not see why the disabled sister can not be claimed for EIC only.

[Redneck]

Check out

pages 11-5 in TTB under Qualifing Child. Both sister and nephew should qualify.

[DaveO]

I stand corrected

Glad the new definition of Qualifying Child makes everthing so much clearer.

[jainen]

nothing at all new

>>new definition of Qualifying Child makes everthing so much clearer.<<

In terms of EIC, there is nothing at all new about it. Hasn't it been exactly the same law for years and years? Even the term "qualifying child" is the same.

[DaveO]

Years and Years back to 2000 I guess

That's when the defintion of Qualiying Foster Child was expanded to include a brother, sister or an unrelated person placed by an agency.

[Koss]

EIC in the stone age

That's when the defintion of Qualiying Foster Child was expanded to include a brother, sister or an unrelated person placed by an agency.

The way I remember it, the rules back then were more liberal. I don't think the definition was expanded. Beginning in 2002, the rules became more restrictive.

For 2000 and earlier, I think you could claim EIC for a foster child, and the definition of a foster child was a child that lived with you all year and that you cared for as your own.

That actually made it possible for someone to claim any kid, just by asserting those two facts. Sure, the IRS could then demand proof of the residency. But the "cared for" business was incredibly subjective.

This definition of a foster child remained in effect for "qualifying person" for Head of Household, through 2004. Then came UDC.

Just check a 2004 Pub. 17, and read the footnotes below the chart for "qualifying person" for HoH.

I live and breathe this stuff, because most of my clients are low to middle income. And I have lots of single parents and unmarried couples.

Burton