Had quick question about 22 year old daughter that lives with us all year and recently had a baby in nov and has part time seasonal job?

[sr031051]

now I'm lost. she has been totally dependant on us up until nov when baby born and don't want to take away from her return if she claims baby along with herself on her's to maximized the best return for them but also at same time I need to help us also since i'm on SS fixed income

[xmasbaby0]

Only one of you can claim the baby on their return.  A dependent cannot have a dependent.  So if you are able to claim your daughter, you also claim the child. You would then get the $4050 personal exemptions for your daughter and her child and be eligible for the child-related credits such as child tax credit and EIC.   If your daughter makes over $4050 for 2017, then you cannot claim your daughter.  If you claim daughter as your dependent, she does not get the $4050 personal exemption--but it will not matter since she will now owe tax anyhow.  She also would not get EIC or Child Tax Credit if she is your dependent.  I would not characterize it as "hurting" her--you are supporting her and her child.  You do what the tax law dictates.

[xmasbaby0]

OK--wait you just added a little wrinkle to this.  You are on Social Security?  So you do not have any other taxable income?  If that is the case, you get no benefit from claiming anyone as your dependent.

[xmasbaby0]

And...."dependent on us"  Who is "us"  Are you married--will you be filing joint return with your spouse?  We are not getting the whole picture here.

[SweetieJean]

"lives with us"  Does your spouse have income?

[sr031051]

I'm on ss and wife is unemployed and hasn't worked since july 2015 can't find job and yes be filing married joint return

[SweetieJean]

So you support all 4 of you on just Social Security? Any unemployment comp?
(As an aside, I hope your daughter has filed for Child Support.)

[sr031051]

she wont do C/S

[Carl]

Here's some clarification. The baby does not figure into the first sentence of my clarification.

If your daughter earned more than $4050 in 2017 then you flat out can not claim her as a dependent on your tax return. Period.

If your daughter files her own tax return (weather you claim her or not) then I would recommend she NOT claim your grand child as her dependent. Doing so will most likely not help her on her taxes at all, if her earnings for the 2017 tax year are below $14,550 for the year.

If your daughter does NOT claim her child on her tax return, then *you* can claim her child as a dependent on *your* tax return. This *will* help you on *your* taxes.

If your daughter DOES claim your grand child on her tax return, then most likely it will NOT help her on her taxes, and you can't claim the grand child on your tax return, meaning it will not help you either.

Based on the scenario you've provided (as I understand it to be) the best thing to do is this;

- you will claim your grand child on your tax return no matter what.
- You will claim your daughter on your tax return *only* if she earned less than $4050 in 2017.

[xmasbaby0]

The problem is if their only income is SS--which is what they say--they get no benefit from claiming a dependent anyhow.  They do not owe taxes--so the personal exemption does nothing for them--their tax liability is already zero.  They have no earned income--so no child tax credit, no earned income credit.

[SweetieJean]

@Carl  Why wouldn't daughter get EIC and ACTC if her income is more than $4,050 and she claims Baby?

[xmasbaby0]

If it turns out daughter made at least $4050, it is all moot anyhow.  She can claim her own exemption and claim her child, get ACTC and a little EIC.  Deeper issues are, of course, getting child support from the other parent and getting a better job than a seasonal job in oder to bring more income in to the household.  But those are not tax issues....

[Carl]

SJ - Overall it's not worthwhile. As a family, the parent's would most likely get the better tax break including the EIC maybe. I'm not sure if the daughter can claim the child as a non-dependent for the EIC though.

[SweetieJean]

Parents have only Social Security, so no benefit to them at all.

[xmasbaby0]

@Carl They cannot get Earned Income Credit if their only income is Social Security, nor can they get the child tax credit.  Both of those child-related credits require income earned from working.