Dependent

[Redneck]

Before 2005 parents have two children, one lives with them the other lived with grandparents.

Parents claimed dependency. Grandparents claimed EIC because they supported the child.

Now here is 2005. Parents can not claim dependeny because they failed the #5 of the Test for Qualifying Child.

Is this CORRECT?????????????????

[dtlee]

Pretty much correct

The parents cannot claim the child living with the Grandparents as a Qualifying Child because of the rule you cite.

The child living with the Grandparents is a Qualifying Child for the Grandparents and thus the parents cannot even consider the possibility of claiming the child as a dependent under the Qualifying Relative rules.

That is why they cannot claim the dependency of that child.

[RLymanC]

Redneck-EIC

Grandparents claimed EIC because they supported the child.

Your need to drop the notion that one has to be a dependent to claim EIC. Support is not one of the requirements.
1, Age
2. Residence
3. Relationship

[Gene V]

Eic

I have a client who lives with his girlfriends, they have a child together and she has a child from a previous marriage. He pays the support for her and the two children. His girlfriend worked and made $1900 for the year.
He could claim HH with his qualifying child, claim his girlfriend as his qualifying relative. Then his girlfriend could file single without any personal exemption and use her child from the previous marriage for EIC. Does this sound correct?

[jainen]

Yes

Yes, if girlfriend lived there all year. Even though she has a Qualifying Child she can not claim that exemption and neither can the boyfriend.

[Jesse]

No in respect to EIC

I have a client who lives with his girlfriends, they have a child together and she has a child from a previous marriage. He pays the support for her and the two children. His girlfriend worked and made $1900 for the year.
He could claim HH with his qualifying child, claim his girlfriend as his qualifying relative. Then his girlfriend could file single without any personal exemption and use her child from the previous marriage for EIC. Does this sound correct?

The girlfriend can not take the EIC if she is a dependent on someone elses return or am I missing something?

[Bees Knees]

The girlfriend can not take the EIC if she is a dependent on someone elses return or am I missing something?

That rule only applies if the girlfriend is trying to claim EIC without a qualifying child, or if she herself is a qualifying child for someone else.

She can, however, claim EIC on her own qualifying child if she is claimed as a qualifying relative on someone else's return.

[Safire]

Careful

Going back to Pub 501, here is an example.

Quote
If you and another person have the same qualifying child, you and the other person(s) can decide which of you will treat the child as a qualifying child. That person can take all of the following tax benefits (provided the person is eligible for each benefit) based on the qualifying child.

The exemption for the child.

The child tax credit.

Head of household filing status.

The credit for child and dependent care expenses.

The earned income credit.

The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these tax benefits between you.

If you and the other person(s) cannot agree on who will claim the child and more than one person files a return claiming the same child, the IRS will disallow all but one of the claims using the tie-breaker rule in Table 6.
End Quote

This says you cannot divide the tax benefits.

[Bees Knees]

I didn't say they were dividing the tax benefits. The girlfriend is the only one using any of the tax benefits on her child.