Just a question

[Bees Knees]

The reason is there is a loophole for someone claimed as a dependent under the qualifying relative rule. In that case, if you have a qualifying child, you get EIC, even though you are claimed as a dependent. There is no Section 32 exception that makes you ineligible for that.

And I might add, you won't find any IRS example in their instructions or pubs that contradicts that. The confusion here comes from people taking the statement in Publication 17, page 238, column 3, third paragraph (Rule 12), out of context. It say "anyone who is a dependent cannot claim EIC." But if you look at the chapter heading in the previous column, it is in the context of someone trying to claim EIC without a qualifying child. In that case, yes, if you are claimed as a dependent, you don't get EIC. But if you have a qualifying child, that statement in Pub 17 doesn't apply.