Eitc?

[veritas]

Mom (age 24) and daughter (age 1) lived with mother, father, grandfather and I think a sister. Mother made under exemption amount for the year. Also got some assistance from the state. Grandfather's agi is higher and so is her parents.

According to TTB on page 3-16 a similar example says no EITC for the mom? Why not?

[veritas]

This site is helpful

http://apps.irs.gov/app/eitc2006/Return_To_Start.do

[Black Bart]

Veritas

That guy who answered your post is pretty sharp.

P.S. It's because she's their dependent, isn't it?

[veritas]

Ok

I am more confused.

Mom in this case is NOT a qualifying child, however she is a qualifying relative. So why can the mom not take the EITC?

[Koss]

Eic

EIC is disallowed if the taxpayer is a dependent.

Burton

[Brad Imsdahl]

I think she can claim EIC.

Under the rules for claiming EIC with no children, a dependent cannot claim EIC.

Under the rules for claiming EIC with one or two children, a taxpayer cannot claim EIC if the taxpayer is a Qualifying Child of another taxpayer.

So in your case, if Mom is a dependent because she is Grandma’s Qualifying Child, then she does not get EIC for her own kid. But if Mom is not a Qualifying Child of Grandma, but rather, a dependent because she is a Qualifying Relative of Grandma, then it appears under the EIC rules that she can claim EIC for her own kid.

What you can’t do is have Grandma claim some of the benefits and Mom claim the rest. If Mom claims any benefit, Grandma gets nothing. If Grandma claims any benefit, Mom gets nothing.

[veritas]

Thank you Brad

for helping me clear that up!

[jainen]

under the unified definition

>>if Mom is not a Qualifying Child of Grandma, but rather, a dependent because she is a Qualifying Relative of Grandma, then it appears under the EIC rules that she can claim EIC for her own kid<<

If Mom is any kind of dependent then she can't have a dependent herself. Therefore she can't claim EIC based on a qualifying child, which is a dependent under the unified definition.

[veritas]

Mom's

child does not have to be a dependent but must be a qualifying child.

[jainen]

I'll compromise

>>child does not have to be a dependent but must be a qualifying child<<

I'll compromise. If the one-year-old baby provides more than half of her own support, the she is not a dependent and it's okay to take her as a qualifying child for EIC.

[Kram BergGold]

TTB page 3-15

At the top of the page, #1, you can't claim someone as your dependent if you are claimed by someone.
So if grandparent does not claim Mom or kid then Mom gets kid as as qualifying child and all the beni's of it except is H of H, mu assumption is Grandparents paid for upkeep of house.
If Grandparents claim Mom as a qualifying relative dependent, then they should claim grandchild as a qualifying child because mom can't.

[veritas]

Oh yeah

half way there! I'm making steady progress.



I'll meet you halfway, that's better than no way
There must be some way to get it together
And if there's some way, I know that some day
We just might work it out forever.

lyrics by ????????

[jainen]

I can't compromise

I can't compromise with someone who quotes the Partridge Family, so my position is that the mom is a qualifying relative whether her folks claim her exemption or not, and the unified definition says if the baby is a qualifying child under one benefit (such as EIC) she is a qualifying relative under any of the others (such as dependent) even if additional or reduced requirements control whether mom is actually eligible for the benefit.

Therefore, she is not eligible for EIC because she can't claim a dependent which she can (even though she can't because she is a dependent herself) because she is eligible for EIC which uses the same unified definition in spite of using a modified definition.

[veritas]

I knew

I should have gone with the Moody Blues.

[Brad Imsdahl]

Therefore, she is not eligible for EIC because she can't claim a dependent which she can (even though she can't because she is a dependent herself) because she is eligible for EIC which uses the same unified definition in spite of using a modified definition.

The issue is not whether she can claim a dependent. She can't. The issue is whether or not someone who is a dependent can claim EIC on their own Qualifying Child.

Assume Grandma takes no benefits on the grandchild. Mom is still a dependent of Grandma. But Grandma does not take any benefit on Mom's child.

Mom qualifies for two benefits on her own Qualifying Child:
1) Child Tax Credit
2) EIC

The rule that bars a dependent from claiming EIC only applies to a situation where there is no Qualifying Child.

If there is a Qualifying Child, then the taxpayer who is someone else's dependent can only claim EIC if the taxpayer is not a Qualifying Child of someone else. In this case, Mom is a dependent, but not a Qualifying Child of Grandma because she is too old.

There is nothing in the EIC rules barring a Qualifying Relative, claimed as a dependent of someone else, to claim EIC on their own Qualifying Child.