EIC or HH

[tsimp]

Mother lives with boyfriend, mother's son has a child(age 3), son is 19 years old out of school and earns $4000 in 2006(claims himself). Son and child lives with mother and boyfriend. Boyfriend owns home,and makes $46,000 in 2006, mother made $31,000 in 2006. Any idea on who gets what. Can the mother claim EIC and HH for the child even though the boyfriend earns more money , and owns the house.

Thanks for your time

[Kram BergGold]

My view

Either the grandmother or the son can claim the grandchild as their dependent. If the grandmother claims the grandchild then if she treated the son as her child then I say H of H ok if she provided more than 50% of the costs of her share of the house. So if she did not pay rent to her significant other than I would say no H of H. EIC would be ok and she would get child tax credit.