EIC and Qualifying Child

[Bart]

I have an unmarried client who has a 21 year old daughter who lives with her. The daughter provided more than half her own support. Mom provided more than half the money for the household expenses. Does daughter qualify mom for EIC? Does daughter qualify mom for HOH?

[grandmabee]

Does mom claim daughter as dependent? At 21 she must be student or make less than 3900. to be dependent.

[Bart]

Does mom claim daughter as dependent? At 21 she must be student or make less than 3900. to be dependent.

Mom does not claim daughter as her dependent. Daughter is a full time student but cannot be claimed since she provided over half her own support.

[grandmabee]

then no HOH and no EIC

[David1980]

For EIC, there isn't a support test. So assuming all the other tests are met, you're fine on EIC. (You didn't say whether they were a student - if not, then age test will fail.)

http://www.irs.gov/publications/p596/ar02.html#en_US_2013_publink1000297724

Head of household relies on qualifying child or qualifying relative rules for which support does matter. If the daughter provides over half her own support she is not a qualifying child or qualifying relative of the taxpayer and won't be a qualifying person for HOH.

[Jack from Ohio]

The daughter does NOT qualify the mother for EIC. The daughter must pass the test to QUALIFY as a dependent child. She does not.

Mom does not get HOH or EIC.

[David1980]

Which test does the daughter fail to qualify for earned income credit? Relationship, age, joint return, or residency?

[Terry D EA]

Bart stated that the daughter is a full time student. Therefore, dependency and EIC can be claimed by the mother as David pointed out, there is no support test for EIC because the daughter is a full time student.

[Jack from Ohio]

I want to know how much a 21 year old college student earns to be able to state that she provides more than 50% of her own living? Would have to be $40K if you count all expenses including college, rent, food, car insurance, etc. Not buying it.

[David1980]

Student loans perhaps.

[Pacun]

I had to edit my answer. No HOH for mother and she cannot claim the child as her dependent but it seems the mother qualifies for EIC.

[joanmcq]

Student loans will do it every time, especially if the mom's income is such that she qualifies for EIC.

[Cathy]

No HOH as her daughter claims herself. Mother can claim EIC as it doesn't matter where they live, as long as the

child lives with her mother....even a homeless shelter will qualify mother for the EIC...as long as the daughter lived

there also with her mother. And the EIC for the daughter is based upon the fact that the daughter is a full time

student for at least 5 months of the year (because of her age).

IRS has an "EIC Assistant" that can be very helpful in a case such as Bart has.