Earned Income Credit

[J.HENLEY]

Father and Mother & 1 child not married but living together father has higher income. Can the father claim head of household on his return, letting the mother file single, claiming child tax credit and earned income credit? Keep in mind Rule #9 on qualifing child.

[Gretel]

My opinion

Dad HOH and Exemption and Child Tax Credit and Mom EIC

or

Dad HOH and Mom Exemption CTC and EIC.

[Gene V]

Eic

This is the way I read the rules.

If they are living together all year, then they could agree on which parent could take all of the credits, they cannot divide these tax benefits between them. See Pub. 17 page 27 Example 7.

[J.HENLEY]

Eic

if parents decide to let mon take all the credits Def. of HOH disallows Mom because she does not support and maintain a household, Dad does.

[RLymanC]

Unmarried Mom & Pop

Pub 17 Page 27 down the first column say's only one person can use a qualifying child for all the benifits including HOH filing status. Quote: The other person cannot take any of these benefits based on the this qualifying child. In other words you and the other cannot agree to divide these tax benifits. So if Mom takes the child as a dependent, and Pop provides over half the cost of keeping up the home "Noboby is HOH" I can't believe this is correct.


TaxBook page 3-16 go down 7 rows reads that Pop paid over half the cost of keeping up the home can file HOH and then allows the couple to decide on Dependent, CTC, EIC and Dependent Care Credit.

HELP.....HELP.....

[Brad Imsdahl]

Pub 17 Page 27 down the first column say's only one person can use a qualifying child for all the benifits including HOH filing status. Quote: The other person cannot take any of these benefits based on the this qualifying child. In other words you and the other cannot agree to divide these tax benifits. So if Mom takes the child as a dependent, and Pop provides over half the cost of keeping up the home "Noboby is HOH" I can't believe this is correct.


TaxBook page 3-16 go down 7 rows reads that Pop paid over half the cost of keeping up the home can file HOH and then allows the couple to decide on Dependent, CTC, EIC and Dependent Care Credit.

HELP.....HELP.....

On page 3-14 under “Qualifying child of More Than One Person,” it says “If the child is the qualifying child of more than one person, only one person can claim the child as a qualifying child for all of the following tax benefits, unless the rules for children of divorced or separated parents above applies.” And then it lists all five of the benefits mentioned on page 3-16.

The seventh situation on page 3-16 does not say they can split the benefits. The top of the chart says “Does the single parent qualify to take HOH, Dependent Exemption, Child Tax Credit, EIC, or Dependent Care Credit.

In the seventh situation, only Dad qualifies for HOH because he is the only one to have paid over half the cost of the home. The other 4 benefits, both mom and dad qualify for the benefits, but Dad would automatically get it under the tie breaker rules if he chose to claim the child as a dependent.

That doesn’t mean he can take HOH and Mom can take all the rest. You are right in that if he lets Mom take all the other benefits, he would no longer qualify for HOH.

Add to footnote number 6 at the bottom: “If Dad does decide to let Mom claim the child, he no longer qualifies for HOH.”

[RLymanC]

Brad

Thank you very much for teaching me how to read, I knew there was a reason for puchaseing TTB & the Deluxe Edition. Your response was clear and concise.

Thanks for allowing me to get a good nights sleep,

Bob

[Brad Imsdahl]

I am going to add that to our list of updates. I think your question is a good point. I want to make sure our coverage of the new uniform definition of a qualifying child is clear to everyone.

[Unregistered]

thanks

If I understand you, then mom can get all of the credits and dad and mom would file as single. Other words, no one would get HH

[RLymanC]

Hoh

That's what I understand from Brad's response. If Mom uses the child they both file single.

There's something wrong here!!!!!!!!! It's hard to believe Congress meant it to be this way.

[Bees Knees]

fair?

Look at the 8th situation on page 3-16. If Mom doesn't need any of the benefits because the boyfriend is supporting Mom and her income is below the filing requirements, then nobody gets anything.

[Bees Knees]

And lets just say her income is $4,000 for the year so the boyfriend can't even claim her as a dependent.....

[RLymanC]

Situation 8

Bees,
Wouldn't the child be her QC, if she made $4,000 she files single and gets the EIC.

[Bees Knees]

True. What if the $4,000 was just an IRA she cashed?

Nothing....

[jainen]

QC to both parents

Child is QC to both parents. They can use any method they want to decide who gets it, such as lowest total tax or one person pays off the other. If they can't agree, father gets it because he has higher AGI. Whoever ends up with the QC can claim any or each of the five benefits if they meet the rest of the eligibility requirements. The other person claims nothing.

Don't assume anything, but work through all the tests. For example, just because the father has higher income doesn't mean he pays more than half the housing costs.