EIC credit

[RLymanC]

Father and daughter and grandchild all in the same house.

Daughter is 36 yrs old and earns $3,000. Father claims HOH and daughter as a dependent.

OK for daughter to file single, not claim her self and claim EIC for her child.

[Gretel]

No, you can not be the dependent of someone else and claim EIC.

[RLymanC]

Eic

Thanks for the reply,,,,The taxpayer cannot be the "Qualifying Child" of another person, in this case the taxpayer is not the qualifying child because of the age factor.

It seem like it would be OK for the daughter to be claimed by the Father as a dependent and still be elgibile to claim her child for EIC.

[GIMoe]

Father and daughter and grandchild all in the same house.

Daughter is 36 yrs old and earns $3,000. Father claims HOH and daughter as a dependent.

OK for daughter to file single, not claim her self and claim EIC for her child.

______________
Per TB pg 3-16 & 17:

The child qualifies as a qualifying child of both the grand-dad and the mom. However, because mom is a qualifying relative of grand-dad, mom can only claim the child tax credit and EIC for her child. However, if mom does claims either of these two benefits, then grand-dad gets nothing for the child (even though he would get the dependency exemption for his own daughter) because only one person can claim a qualifying child for all five tax benefits, unless the rules for children of divorced or separated parents applies. Notice 2006-86 says the tie breaking rules apply as a group, rather than on a section-by-section basis.

So, I would say yes it is ok for grand-dad to claim his daughter and the daughter gets CTC and EIC for her child.

[Gretel]

I still stand by my post. Look at TTB pg. 3-16, 8th situation. But maybe there is something I am not seeing. Wouldn't be the first time.

[GIMoe]

Same reference

I still stand by my post. Look at TTB pg. 3-16, 8th situation. But maybe there is something I am not seeing. Wouldn't be the first time.

That was the same reference I used. Look at footnote number 8 below the chart on pg 3-17. It is almost word for word with this situation.

Gran-dad can claim Mom as dependent, if he does, then Mom can not claim child as a dependent, but can elect to get the CTC and EIC. If she elects to do so, then Grand-dad gets nothing for the child at all. Need to work the figures, but the best case may be to allow the Grand-dad to claim the child as well and then he can get all the tax benefits that apply.

[Gretel]

That was the same reference I used. Look at footnote number 8 below the chart on pg 3-17. It is almost word for word with this situation.

Gran-dad can claim Mom as dependent, if he does, then Mom can not claim child as a dependent, but can elect to get the CTC and EIC. If she elects to do so, then Grand-dad gets nothing for the child at all. Need to work the figures, but the best case may be to allow the Grand-dad to claim the child as well and then he can get all the tax benefits that apply.

I still don't see anything in regards to EIC. CTC yes (mute point in our question) but no EIC.

[GIMoe]

Exact Quote

I still don't see anything in regards to EIC. CTC yes (mute point in our question) but no EIC.

_____________

Here is the exact quote of footnote #8 on TTB Page 3-17:

In contrast with the boyfriend scenario, the child qualifies as a qualifying child of the grandma and mom. However, because mom is a qualifying relative of grandma, mom can only claim the child tax credit and EIC for her child. If mom claims either of these two benefits, grandma gets nothing for the child (although he would get dependency exemption for her own daughter) because only one person can claim a qualifying child for all five tax benefits, unless the rules for children of divorced or separated parents applies. Notice 2006-86 says the tie breaking rules apply as a group, rather than on a section-by-section basis.

EIC is clearly stated in the above quote (bold and underline added for emphasis only).

[BP.]

In fairness to Gabriele, that is NOT the language in my copy of TTB p. 3-17, footnote #8. There is NO mention of EIC, just as she has stated. However, I would refer Gabriele to TTB p. 11-5, top of right hand column, where it mentions that a taxpayer may not be a qualifying child of another, and also Pub 17, p. 230, Part B, Rule 10, and p. 235, Rule 10- "You cannot be a qualifying child of another." Distinguish this from Part C, Rule 12 for those without a qualifying child; they cannot be a dependent of another.

[Gretel]

GIMoe and BP, thanks so much for clarifying and through persistence,help clarify this issue for me. Isn't it weird that TTB's are not all the same