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Level 2
March 7, 2021
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Nondependent - for EIC/Dependent Care Only

  • March 7, 2021
  • 1 reply
  • 30 views

Hi! I have a question! When going through Turbotax Home & Business 2020 it is telling me that my nephew is a nondependent - for EIC/dependent care only! I understand why I can’t claim him as a dependent…because he provided his own support. So, why is it allowing me to take a credit for him for earned income credit? My only concern: since he did pay for his own support, obviously he has an income so is it still ok?

If so, does he still need to file a tax return since I’m not claiming him as a dependent? He’s under the age of 25 so he doesn’t qualify for earned income credit so it wouldn’t be double dipping!

 

Thanks!

Best answer by macuser_22

@jenbcute wrote:

As I stated in my post, I realize that I can't claim him as my dependent but it is allowing me to claim the earned income credit for him as a non-dependent! The only reason I even tried is because a friend told me she's claimed her disabled brother like that for years & told me I should be able to claim my nephew the same way & it looks like she's right! I just don't want them to come back on me for any reason later on!


That is a different question.   If disabled by the IRS rules then if the only reason that you cannot claim him as a dependent  is because he earned more then $4,300, you can still get the EIC.

 

The IRS defines disabled this way:

Permanent and total disability.

You have a permanent and total disability if you can't engage in any substantial gainful activity because of your physical or mental condition. A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.
Substantial gainful activity.

Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity.


1 reply

macuser_22
Alumni - Champ
Alumni - Champ
March 7, 2021

I suggest that you deleted the dependent and re-enter.

 

You must have answered one or more questions incorrectly.    A nephew is not "your child" he is an "other" dependent, not eligible for EIC.    If he is over the age of 18 (or over age 23 if a full-time student)  and earned more the  $4,300 then  he cannot be a dependent at all and should not be on your tax return.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
jenbcuteAuthor
Level 2
March 7, 2021

As I stated in my post, I realize that I can't claim him as my dependent but it is allowing me to claim the earned income credit for him as a non-dependent! The only reason I even tried is because a friend told me she's claimed her disabled brother like that for years & told me I should be able to claim my nephew the same way & it looks like she's right! I just don't want them to come back on me for any reason later on!

macuser_22
Alumni - Champ
Alumni - Champ
March 7, 2021

@jenbcute wrote:

As I stated in my post, I realize that I can't claim him as my dependent but it is allowing me to claim the earned income credit for him as a non-dependent! The only reason I even tried is because a friend told me she's claimed her disabled brother like that for years & told me I should be able to claim my nephew the same way & it looks like she's right! I just don't want them to come back on me for any reason later on!


That is a different question.   If disabled by the IRS rules then if the only reason that you cannot claim him as a dependent  is because he earned more then $4,300, you can still get the EIC.

 

The IRS defines disabled this way:

Permanent and total disability.

You have a permanent and total disability if you can't engage in any substantial gainful activity because of your physical or mental condition. A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.
Substantial gainful activity.

Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity.


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**