An EIC Question?

[jake12a]

Me and my girlfriend have a 1-year old child.  We live with my girlfriend's mother.  My girlfriend does not work.  I work, and I just finished filing my taxes.  I did not claim my daughter as a dependent, as we have an agreement that my mother-in-law will claim her.  I checked the box that said "a verbal agreement has been made with another family member to claim dependent" or something to that extent.  Then, Turbo Tax automatically gave me the EIC, based on my low income.  Is this correct?  Is it accurate that I'd be eligible for the EIC, even though I didn't claim my daughter as a dependent?  Thank you in advance.

[Hal_Al]

No, that is not allowed

The interview is confusing (it's designed for divorced parents, who are allowed to split the child). That  is not applicable in your case. You should not enter the child, at all. 

Note that the interview does not say "agreement has been made with another family member" . It specifically says other parent. Even then it is not applicable to parents who live together.

[jake12a]

What do I do, then?  I've already filed.  And if you're recommending that I amend my return, How do I remove the EIC?  I didn't see any option to do that.  And to clarify, the TT system clearly asks, at the beginning of the taxes, if you've had a child or a new addition to the family, during the past year.  I answered "yes," of course, so I'm not sure what I did wrong.

[Hal_Al]

Yes, you will need to amend. You delete the child from your personal info section. That will result in a reduction in your EIC (if you are under age 25, it will eliminate the EIC).
Like I said, the interview is tricky. One of the questions is does another relative help support (your child's name).

[jake12a]

Thanks....do I need to amend the Federal only, or the State, as well?  Or, will amending the Federal take care of both?

[Hal_Al]

Which state? Some states have an EIC that is calculated off the federal EIC; most do not. Amending Federal does not take care of state