EIC Tables turned

[ILLMAS]

HOH Parent  stuck around home to take care of the younger kids and had under $1,600 in wages for 2020, TP two daughter 19 & 20 (earned 15K, and other earned 7K) had to work to cover the food, rent and utilities and I wanted to see if the daughter  can claim HOH and include the mother and siblings as dependents?  Daughter that is 19 earned the most and would benefit from EIC.

[ILLMAS]

Title should be HOH Tables turned, not EIC 

[Randall]

Interesting.  I have a little different situation.  But I'm wondering if you can pick and choose if they're all living in the same house.  In my case, natural father of baby, living with natural mother (not married) in mother's Mom & Dad's house.  Much more beneficial for natural father of baby to claim baby, qualifying for EIC even when under 25 age (with child).

[Lion EA]

ILLMAS, remember that parent can use 2019 earned income if higher than 2020 to qualify for both EIC and CTC, if that helps.

HOH and EIC are two different things.

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

https://www.irs.gov/help/ita/what-is-my-filing-status

[Pacun]

was any of the daughters a full time student for 5 months in 2020? 

You don't have to support anyone to use them for EIC, but the dependent doesn't have to provide more than 50% of their own support. 

So father can file as single and claim the 20 year old provided she was a full time student and father can get EIC, even if the 19 years old supported her partially.

 

[Randall]

12 hours ago, Pacun said:

You don't have to support anyone to use them for EIC, but the dependent doesn't have to provide more than 50% of their own support.

So Pacun, in my case, my 20 year old natural father (living in same house with natural mother (not married), their baby and parents of the natural mother) can claim the child, and qualify for EIC.  I've been looking for references and can't find any specifics.  So if they're all living in the same household, they can pick and choose who claims the baby?  I believe the natural father's earnings are over 50% of his own support.  But the main support of natural mother and baby are coming from the grand parents and their house.

[Pacun]

Anyone except the mother can get EIC.

Let's say that the father earned $5K and he was supported by the in-laws and his support is $20K. The fact that he is not blood related make him NOT a qualifying child to his in-laws based on his earnings. He is not even a dependent for his in-laws, so he is free to claim EIC. Let's assume that he decides not to claim the child, as long as his in-laws made more than him, they can claim EIC.

You can be 10 years old and still get EIC credit if you claim your 8 years old sibling or you could be 105 years old and get EIC as long as you claim a dependent that qualifies you.  Age doesn't matter at all for EIC credit but you have to be older than your dependent.

Mother could be a qualifying child for her parents and that will prevent her from claiming EIC. You didn't mention her age or income but you should have enough information now.

[Randall]

Thanks Pacun.  This is what I got from my reading.  It's just one of those situations that seems too good to be true and I guess I was trying to cover myself from the diligence point of view.