EITC question

[ldreyna]

Taxpayer lives with parents and sister and brother. Taxpayer has 16,000 in AGI. Parents have 22,000 AGI. Sister was a student in 2009 age 21. Taxpayer is age 31.

Question: Can brother claim sister for EITC?

I would think that he could because according to the tie-breaker rules, since sister's parents choose not to claim her (sister), Taxpayer's AGI is higher than half of parents AGI on joint return. Am I thinking correct?

Any feedback would help.

Thanks,

Larry

[Pacun]

Taxpayer lives with parents and sister and brother. Taxpayer has 16,000 in AGI. Parents have 22,000 AGI. Sister was a student in 2009 age 21. Taxpayer is age 31.

Question: Can brother claim sister for EITC?

I would think that he could because according to the tie-breaker rules, since sister's parents choose not to claim her (sister), Taxpayer's AGI is higher than half of parents AGI on joint return. Am I thinking correct?

Any feedback would help.

Thanks,

Larry

If only one parent worked, brother is not going to have more income than the working parent. How does this work on the community states where the non working parent will get half of the income?

[joelgilb]

or the short answer

NO!

[joelgilb]

hmmm

Joel with a short answer, may I have turned over a new leaf...

[jainen]

>>Taxpayer's AGI is higher than half of parents AGI on joint return<<

In my opinion, based on the unpopular activity of reading the instructions, you are correct. In fact, Pub 596 at http://www.irs.gov/pub/irs-pdf/p596.pdf addresses your situation directly with Example 8 on page 18.

[ldreyna]

If only one parent worked, brother is not going to have more income than the working parent. How does this work on the community states where the non working parent will get half of the income?

Thats why I posted the question.

Anyway. father gets about 11,000 from a pension (taxable). Mother earned 11,000 in job. I didnt read anything about community prop. Would that be a factor?

Larry

[ldreyna]

>>Taxpayer's AGI is higher than half of parents AGI on joint return<<

In my opinion, based on the unpopular activity of reading the instructions, you are correct. In fact, Pub 596 at http://www.irs.gov/pub/irs-pdf/p596.pdf addresses your situation directly with Example 8 on page 18.

This is what I based my line of thinking. I just wanted someone elses opinion to compare my perception of what I read. Thanks Jainen.

[jainen]

>>I just wanted someone elses opinion<<

Well, you got THREE opinions--and only one of them agreed with you. Now what?

[taxguy057]

There was an equation that I got off another blog like this one and the person that post it was an ex-irs agent. He said when doing reviews of people's returns to determine whom can claim a dependent when multiple incomes are in one household... (Add up all the incomes of the household and divide it by how many people in the house. whomevers income beats the number you get from dividing the most claims the dependents...) Have use this several times and it does help. Oh yeah as long as other tests for the right to claim are met....

[jainen]

>>it was an ex-irs agent<<

I can understand why he no longer works for the IRS. In my opinion, his equation is not based on the current tax code.