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Kailef
Level 2

EIC Qualifying Child Non Dependent Credit

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.

 

1 Best answer

Accepted Solutions
KrisD15
Employee Tax Expert

EIC Qualifying Child Non Dependent Credit

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. 

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5 Replies
KrisD15
Employee Tax Expert

EIC Qualifying Child Non Dependent Credit

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. 

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kimf1980
New Member

EIC Qualifying Child Non Dependent Credit

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
Employee Tax Expert

EIC Qualifying Child Non Dependent Credit

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)

 

@kimf1980 

 

 

 

 

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kimf1980
New Member

EIC Qualifying Child Non Dependent Credit

So if I can prove she was at my house even 1 day over 6 months then I am eligible? Her dad will get the exemptions and child tax credit but I have done this with my other daughter by claiming non dependent and her dad and I never had any issues but with her my address was the 1 being used for everything. I am pretty sure I can do this, I just don't know if it's going to trigger an audit or if that is just random.

JohnB5677
Employee Tax Expert

EIC Qualifying Child Non Dependent Credit

  • If both parents claim the child on separate tax returns: The parent with whom the child lived the longest during the year may claim the child
    • If the child lived with each parent for the same amount of time: The parent with the higher adjusted gross income (AGI) for the year may claim the child.

Basic Qualifying Rules

To qualify for the EITC, you must:

Claim the EITC Without a Qualifying Child

  1. Meet the EITC basic qualifying rules.
  2. Have your main home in the United States for more than half the tax year. ...
  3. Not be claimed as a qualifying child on anyone else's tax return.
  4. Be at least age 25 but under age 65 (at least one spouse must meet the age rule)

Only One Person May Claim a Qualifying Child

Sometimes a child meets the rules to be a qualifying child of more than one person.

If your child is also the qualifying child of another person, only one of you may claim the child for the EITC and related child tax benefits.

Exception

If a qualifying child’s parents are divorced, separated or parents living apart, the noncustodial parent may be entitled to claim the EITC.

Related: Publication 596, Earned Income Credit (EIC)

 

How to Choose Who Will Claim the Qualifying Child

To choose which person can claim the qualifying child to get the EITC, use these tiebreaker rules:

  • Only one person is the child's parent: The parent may claim the child
  • Both parents file a joint tax return with each other: They may claim the child
  • Both parents claim the child on separate tax returns: The parent with whom the child lived the longest during the year may claim the child
    • If the child lived with each parent for the same amount of time: The parent with the higher adjusted gross income (AGI) for the year may claim the child
  • Neither person is the child’s parent: The person who had the highest AGI for the year may claim the child
  • A parent can claim the child but doesn’t: The person who had the highest AGI for the year may claim the child, but only if that person's AGI is greater than the AGI of any of the child's parents who can claim the child

If you can’t claim the qualifying child because of the tiebreaker rules, you may be eligible to claim the EITC with no qualifying child.

Qualifying Child Rules

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