EIC Qualifying Child Non Dependent Credit

Forum|Forum|5 years ago
February 4, 2021
1 reply
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I'm a little confused by the whole EIC Non-Dependent Credit.

Person A is a disabled adult child who works and remains under SGA. Draws SSDI also. Person A files taxes this year and claims himself so he can get his stimulus. Personal A lives with Person B all year. He selects under My Info they can't be claimed. On their EIC form, it gives an option they can check that they were disabled and can be claimed by Person B. Person A doesn't qualify for EIC then. Person A goes to review taxes at the end, and it says Form 8862 needs reviewed and line 4 must be blank.

Person B is the mother of Person A. Person B is not claiming Person A as a dependent but can qualify for EIC on Person A for being disabled and living with them all year.

Why would the first person get that link 4 must be blank situation?

Can Person A claim themself and not qualify for the EIC and Person B(the parent) qualify for EIC on Person A in this situation as a non-dependent?

Can't a person be a qualifying child to the parent if they're totally disabled and not claimed as dependent? I thought that is what the non-dependent EIC was for.

TurboTax Free Edition Online

Best answer by KrisD15

The term "Non-dependent EIC" can only refer to the situation where divorced parents have an agreement and the custodial parent "allows" the non-custodial parent to claim the child as their dependent. (It's a little more complicated, but that's the idea)

When this happens, the non-custodial parent still can't use the child for certain credits, and the Earned Income Credit is one of them.

In this situation, the custodial parent, although not claiming the child as their dependent, does get the EIC based on the child even though the child is not being claimed as their dependent, thus the "Non-dependent EIC"

In your situation, you would need to claim Person A as your dependent to have it impact your EIC.

KrisD15Answer

Level 15

When this happens, the non-custodial parent still can't use the child for certain credits, and the Earned Income Credit is one of them.

In your situation, you would need to claim Person A as your dependent to have it impact your EIC.

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kimf1980

Level 2

I would like to know if this can be done vice versa. My daughter lives with her dad but court papers say he gets to claim her as dependent but we have joint 50/50 custody. He makes too much for EIC so could I claim her as non dependent and get the EIC if I am the non custodial parent based on the fact that she uses his address for school and she is 17 and also works and uses his address for her job as well.

JamesG1

Level 15

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.