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Deductions & credits
Publication 596 page 13 examples 1 and 2 point out that dependent status is not in the four tests for qualifying child for earned income credit, and the taxpayer dependent status is not relevant to qualifying for earned income credit.
What boxes do I check to claim the earned income credit given the IRS examples?
Publication 596, Page 13
Example 1—child lived with parent and grandparent. You and your 2-year-old son Jimmy lived with your mother all year. You are 25 years old, unmarried, and your AGI is $9,000. Your only income was $9,000 from a part-time job. Your mother's only income was $20,000 from her job, and her AGI is $20,000. Jimmy's father did not live with you or Jimmy. The special rule explained later for divorced or separated parents (or parents who live apart) doesn't apply. Jimmy is a qualifying child of both you and your mother because he meets the relationship, age, residency, and joint return tests for both you and your mother. However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). He isn't a qualifying child of anyone else, including his father. If you don't claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can treat him as a qualifying child to claim the EIC (and any of the other tax benefits listed earlier for which she qualifies).
Example 2—parent has higher AGI than grandparent. The facts are the same as in Example 1 except your AGI is $25,000. Because your mother's AGI isn't higher than yours, she cannot claim Jimmy as a qualifying child. Only you can claim him.
What boxes do I check to claim the earned income credit given the IRS examples?
Publication 596, Page 13
Example 1—child lived with parent and grandparent. You and your 2-year-old son Jimmy lived with your mother all year. You are 25 years old, unmarried, and your AGI is $9,000. Your only income was $9,000 from a part-time job. Your mother's only income was $20,000 from her job, and her AGI is $20,000. Jimmy's father did not live with you or Jimmy. The special rule explained later for divorced or separated parents (or parents who live apart) doesn't apply. Jimmy is a qualifying child of both you and your mother because he meets the relationship, age, residency, and joint return tests for both you and your mother. However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). He isn't a qualifying child of anyone else, including his father. If you don't claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can treat him as a qualifying child to claim the EIC (and any of the other tax benefits listed earlier for which she qualifies).
Example 2—parent has higher AGI than grandparent. The facts are the same as in Example 1 except your AGI is $25,000. Because your mother's AGI isn't higher than yours, she cannot claim Jimmy as a qualifying child. Only you can claim him.
June 3, 2019
4:44 PM