Deceased filer & EIC

[Trnr395]

I have a client who passed away last year in may. Since he only had a few months worth of wages he qualifies for EIC based on wages for part of the year. Can he qualify for EIC in this case?

[kcjenkins]

Yes, if he met the requirements for EIC, then on his final return you can claim it.

[BulldogTom]

OK, I can't resist. I know that we are entitled to take any credit we are otherwise eligible for in the year we die. But how do you answer the question "was your home in the US for at least 6 months?" on the questions tab when he died in May?

Things that make you go hmmmmmmmm.

Tom

Lodi, CA

[TaxmannEA]

As a part-time gravedigger, I have helped many people move in to their "permanent residence" after their demise. The posibility of them moving overseas is very small after that point in time.

[Pacun]

OK, I can't resist. I know that we are entitled to take any credit we are otherwise eligible for in the year we die. But how do you answer the question "was your home in the US for at least 6 months?" on the questions tab when he died in May?

Things that make you go hmmmmmmmm.

Tom

Lodi, CA

If US Citizen moved to the US in December 2008 from a foreign country (where he lived for 2 years), worked in the USA Jan - April 2009 and died at the end of April 2009, will not qualify for the credit even if he made only 5K.

[kcjenkins]

But how do you answer the question "was your home in the US for at least 6 months?" on the questions tab when he died in May?

Tom

Lodi, CA

In the year you are born, and the year you die, you are treated for tax purposes as if whatever part of the year you lived was a "full year". So you answer that question 'Yes'.

[jainen]

>>you are treated for tax purposes as if whatever part of the year you lived was a "full year"<<

I agree with that, but caution that the calendar year W-2's and 1099's will probably be incorrect if they include payments made after the close of the decedent's tax year, that is, after death. It doesn't matter when it was earned, just when it was paid. Since both earned and unearned income affect EIC, due diligence means the income must be carefully allocated to the decedent and estate or heirs.