EITC

[zeke]

So, my client is the estate of decedent (lifelong resident of Illinois) with DOD of 06/06/08. Single, no children, all qualifications for EITC EXCEPT:

Code & Pub 596 require t/p to be U.S. citizen all year and resident for more than half the year.

Does he qualify: YES - Citizen & resident for all of ( short fiscal) year?,

or NO - the term says year and means calendar year?

z

[jainen]

>>resident for more than half the year<<

Earned Income Credit is established by Section 32. Paragraph (e) says, "Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months." Therefore EITC can be claimed on the decedent's final return. (That would be the 1040, not the estate return as such.)

It's actually not uncommon to get EITC when a taxpayer dies early in the year, even though his income would have been too high if he had lived the whole year.

[zeke]

thanks Jainen!!!!!

zeke