Help with a new EIC situation for me.

[Tax Prep by Deb]

I have already looked at several documents regarding the EIC rules, I just want someone to comfirm my enterpretation to make sure I'm on the right path.

I have two clients that are brothers and they live in the same house and have for several years. Brother #1 is 45 and totally and permantly disabled and is receiving disability through SSA, also a small pention coded 3 for disability, and then this year he has a w-2 for a small amount of work. (I'm going to reconfirm that he is totally and permantly disabled).

Brother #2 is 41 and has earned income of about 8,000.00. In the past when I filed his return I filed it with him claiming the EIC only for himself. After reveiwing the info I'm not sure if I've done this correctly. It seems based on the IRS site, Do I qualify for EIC that because brother #1 is disabled that he could be considered a qualifying child for EIC purposes, thus giving brother #2 a larger EIC.

Anyones take on this? It didn't seem to matter when I did the questionaire online that brother #1 was older than brother #2. It just seems odd, but then again I've never come across this before.

Any thoughts would be greatly appreciated.

By the way, brother #1 diffently has more income with ssa and pension than does brother #2 so I'm not interested in the HH question because it really wouldn't make a difference anyhow, I'm just interested in the EIC aspect.

Thanks!

Deb!

[Tax Prep by Deb]

Does anyone have a though?

Jainen,

I assume by you only quoting me, that you are saying go with what the worksheet showed?

Deb!

[Kea]

The age isn't a factor since brother # 1 is disabled. It looks like all the other tests for Qualifying Child are met except possibly the one about the child must "Not provide more than half of his own support."

Good luck.

[Tax Prep by Deb]

The age isn't a factor since brother # 1 is disabled. It looks like all the other tests for Qualifying Child are met except possibly the one about the child must "Not provide more than half of his own support."

Good luck.

Support is not an issue for claiming EIC. No where in the instructions, or the web site that IRS has asks about support. All the other credits, including HH require the support issue, but that I have been able to see, it doesn't apply to EIC.

Deb!

[Kea]

My apologies. I just did a quick check at EIC and saw the bit about qualifying child and then went to those rules. Since I hadn't researched the whole flow chart, I just put the support issue out as a "maybe."

[Tax Prep by Deb]

My apologies. I just did a quick check at EIC and saw the bit about qualifying child and then went to those rules. Since I hadn't researched the whole flow chart, I just put the support issue out as a "maybe."

That's what is so great about this board. We all learn and I truly appreciate anyone who responds.

In this case I can actually go back to 2006 and ammend, and it represents alot of money. I just don't want to go against the rules, but everything I see leads me to take it.

Deb!

[Pacun]

That's what is so great about this board. We all learn and I truly appreciate anyone who responds.

In this case I can actually go back to 2006 and ammend, and it represents alot of money. I just don't want to go against the rules, but everything I see leads me to take it.

Deb!

If I am not mistaken, these are new rules. In 2006, a brother could not qualify you for EIC.

[Pacun]

You should be OK with the big EIC amount. You should amend at once since your time to claim the extra money is running out.

[elfling]

Deb,

We have one client, for many years, with this exact same situation. Sister is head of household, 4 years younger than her permanently disabled brother who receives SS. Brother "works" minimally in a day care/shelter workshop so there is a W2 each year, usually about $600 total. The work is more along the lines of guided therapy for this individual.

The EIC has flowed successfully without question. Income does not play a role in the EIC. When we first ran this, the EIC form seemed odd to us as well. Her older brother appears as a 'child' on the form.

[Tax Prep by Deb]

If I am not mistaken, these are new rules. In 2006, a brother could not qualify you for EIC.

You could very well be right, I will have to check the 06. But he diffently qualifies for 07 - 09. And boy do I have a happy client!

Deb!

[Pacun]

I checked 2006 and you should be good for all years for which a refund can be requested.

[jainen]

>>Support is not an issue for claiming EIC<<

You might assume even jainen could not possibly disagree with this statement, but it's what I do.

In the original post, the disabled individual definitely has more income than his brother. In my opinion, Mister $8K won't qualify for EIC if HE is a dependent of the disabled brother. In other words, paying 50% of SUPPORT is indeed a very big issue for claiming EIC.

[Tax Prep by Deb]

>>Support is not an issue for claiming EIC<<

You might assume even jainen could not possibly disagree with this statement, but it's what I do.

In the original post, the disabled individual definitely has more income than his brother. In my opinion, Mister $8K won't qualify for EIC if HE is a dependent of the disabled brother. In other words, paying 50% of SUPPORT is indeed a very big issue for claiming EIC.

Jainen,

I agree with your statement and do appreciate your input. In this case however neither would be able to show that they support each other more than 50%. While the disabled brother has a few dollars more coming in most of it is used for his own support as he has medical and other issues that are being paid out of his pocket. Brother #2's income goes soley for his own support, so I do not see either paying more than 1/2 of the other person.

Deb!