Deductions & credits

For you to qualify for the Earned Income Tax Credit, your daughter must meet the qualifications for a qualifying child.  This TurboTax Help states that a qualifying child must have lived with you for more than half of the year in the United States.

The tests for a qualifying child are:

• Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
• Residence: Must have the same residence for more than half the year.
• Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
• Support: Must not have provided more than half of their own support during the year.
• Joint Support: The child cannot file a joint return for the year.

To qualify for the Earned Income Tax Credit, you must have earned income.  The IRS defines earned income as:

• Taxable income you earned as an employee, such as wages, salaries, commissions, and tips,
• Profits from operating your business or farm,
• Long-term disability pay if received before the minimum retirement age,
• Union strike benefits.

Here are the requirements to qualify for the Earned Income Credit:

• Have earned income; and
• Have been a U.S. citizen or resident alien for the entire tax year; and
• Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
• Not have investment income exceeding $10,300; and
• Not be filing a Form 2555 or 2555-EZ; and
• File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.

In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:

• $16,480 if you're not claiming a qualifying child ($22,610 if filing jointly)
• $43,492 if you're claiming 1 qualifying child ($49,622 if filing jointly)
• $49,399 if you're claiming 2 qualifying children ($55,529 if filing jointly)
• $53,057 if you're claiming 3+ qualifying children ($59,187 if filing jointly)

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