EIC but not claim child

[jolly_s]

I am 17 years old. My mother claimed me for the EIC credit, but on her taxes under dependents I am not listed, only my sister. I have earned income and receive social security survivors benefits so I make quite a bit even though my AGI is just barely over 4,000. Does the fact that I am listed on another tax return for the EIC credit mean that I am automatically considered a dependent? I am unsure if by me not being listed in the section for dependents on her return this means I was not counted as a dependent. She received the third stimulus but did not receive one for me, only my sister. I am thinking that would mean the IRS didn't show me as a dependent for her but I am wondering if I am still technically a dependent. I don't want to flag myself by claiming I am not a dependent if they have that I should be. 

[ColeenD3]

You are probably a dependent under the Qualifying Child test. The tests are below. It is possible to have a nondependent for EIC purposes, but it is also possible that your mother just made an entry mistake.

Qualifying Child

Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or step-sibling, or a descendant of one of these.

Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.

Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.

Support — did not provide more than one-half of his/her own support for the year.

Qualifying Relative

You can claim a child, relative, friend, fiancé (etc.) as a dependent on your 2020 taxes as long as they meet all of the following requirements :

• You provided more than half of their financial support. More info
• They made less than $4,300 in gross income during 2020 unless they are a qualifying child.
• They live with you or they are related to you. (Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501.) 
• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren't (or won't be) claimed as a dependent by someone else.
• They aren’t filing a joint return with their spouse.
• You are not being claimed as a dependent on someone else's return.

Here are the rules to Qualify a Child for the Earned Income Tax Credit: (Notice being a dependent is not in the rules.)

To count as a qualifying child for EIC, your child must have a valid Social Security number (not an ITIN).

S/he must also:

·         Be your child (including legally adopted), stepchild, foster child, sibling, half-sibling, step-sibling, or a descendant of any of them (for example, your grandchild or niece); and

·         Be permanently and totally disabled OR under the age of 19 as of December 31, 2020 (under 24 if a full-time student) and younger than you (or your spouse, if filing jointly); and

·         Have lived with you (or your spouse, if filing jointly) for more than half the year; and

·         Not file jointly with their spouse unless they weren't required to file but did so anyway to claim a tax refund.

[jolly_s]

That makes sense but why would TurboTax have not listed me as a dependent in the dependent section, and only on the EIC page? Would she need to file an amended return to fix this or is it correct? 

[ColeenD3]

If, according to the tests, you are in fact a dependent, then you should show as one. As I said, she may have answered one of the questions incorrectly. She should go back over her answers. Yes, if she already filed, she would have to amend.

[Opus 17]

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@jolly_s wrote:

That makes sense but why would TurboTax have not listed me as a dependent in the dependent section, and only on the EIC page? Would she need to file an amended return to fix this or is it correct? 

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We can't see your mother's tax return.  

One reason why you might be listed as "Non-dependent, use for EIC and childcare credit" is if your mother indicated that another parent could claim you as a dependent as a result of a custody order.  Even if someone else claims you as a dependent due to a custody order, your mother is the only person who qualifies to claim you for EIC since that always belongs to the parent where the child lived more than half the year and can't be waived, shared or transferred.

You might also just be confused, at age 17, you qualify as a "qualifying child" dependent, but only for a $500 credit, and not the $2000 credit which is limited to children 16 and under.

If your mother did not file yet and she is not sharing custody with another parent, she might want to delete you and enter you again as a dependent, in case she gave a wrong answer to one of the test questions last time.

Also note that, if your parents are living together unmarried, she must answer "no" to the question about custody agreements, because that only applies to legal agreements between parents who are separated or divorced and live apart.

As far as you are concerned, your income does not disqualify you from being a dependent, as long as you do not provide more than half your own support.