Single mother has 22-year old son. Son is literally moronic but not inherently bad, and is treated for mental illness. In the past rehabilitation center has furnished letter for IRS to signify that the son is chronically mentally deficient. Son has worked sparingly at jobs for the rehab center. Trash pickup, washing cars, etc. On the basis of this letter, the IRS has allowed single mother to claim EIC. Son has been getting W-2 for about $1800.
I see no problem in mother claiming dependent and EIC, even though mother earns some $16,000 annually in a poverty situation. Mother hasn't even had a car. I hope I have painted the picture for this situation.
Mother rents a small structure near a sawmill. In 2006, sawmill owner offered the son a job pulling lumber. For those of you who don't know what "pulling lumber" entails: a conveyor belt carries the lumber away from the saw, and this person pulls the lumber off the conveyor and stacks it onto a skid. The perfect job for someone in son's condition. In 2006 the son receives a W-2 for $6,000 from the sawmill and $1800 from the state-sponsored rehab program. Total income less than $8000.
Son promises to pay mother $100/mo to help with support, and as far as I know, pays it. The rest of his paycheck goes for cigarettes and toys at Wal-Mart, mostly for 7- and 8- year old children. A casual conversation with the son reveals his zeal for his collection of toys for small children. Tonka trucks, GI Joe, etc.
I am not only the tax preparer, but the single mother and her son are close friends of the family, and the situation as I have described it is known to be true. I am inclined to deny her EIC based on no other factor than his $7800 income.
Question: Can mother claim son as a dependent, as well as EIC??
I see no problem in mother claiming dependent and EIC, even though mother earns some $16,000 annually in a poverty situation. Mother hasn't even had a car. I hope I have painted the picture for this situation.
Mother rents a small structure near a sawmill. In 2006, sawmill owner offered the son a job pulling lumber. For those of you who don't know what "pulling lumber" entails: a conveyor belt carries the lumber away from the saw, and this person pulls the lumber off the conveyor and stacks it onto a skid. The perfect job for someone in son's condition. In 2006 the son receives a W-2 for $6,000 from the sawmill and $1800 from the state-sponsored rehab program. Total income less than $8000.
Son promises to pay mother $100/mo to help with support, and as far as I know, pays it. The rest of his paycheck goes for cigarettes and toys at Wal-Mart, mostly for 7- and 8- year old children. A casual conversation with the son reveals his zeal for his collection of toys for small children. Tonka trucks, GI Joe, etc.
I am not only the tax preparer, but the single mother and her son are close friends of the family, and the situation as I have described it is known to be true. I am inclined to deny her EIC based on no other factor than his $7800 income.
Question: Can mother claim son as a dependent, as well as EIC??
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