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Old 03-25-2014, 01:39 PM
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Smile Earned Income Credit

I need an opinion on this tax return.
Client has two children who lived with her the entire 2013. Her earned income was $15,000 plus $8400 that she received from child support for her son.
Her daughter who is a senior in college earned $6000.00.

This client wanted me to file her taxes and claiming both children to get the exemption and earned income credit.

My thinking is as follows:

1. The daughter should file her own taxes and claim any education credit.

2. Suggesting to my client that she would not be able to qualify for the EIC because her income does not support the 50% support test.

Since the children did not live with their father, he would not be able to claim the exemption for any of them.
I am thinking of filing her taxes and only claiming the son but not for the EIC.

Any suggestion would be appreciated.

Thanks.



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Old 03-26-2014, 02:10 PM
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Quote:
Originally Posted by minim84 View Post

#1;Client has two children who lived with her the entire 2013. Her earned income was $15,000 plus $8400 that she received from child support for her son.
Her daughter who is a senior in college earned $6000.00.

This client wanted me to file her taxes and claiming both children to get the exemption and earned income credit.

My thinking is as follows:

1. The daughter should file her own taxes and claim any education credit.

2. Suggesting to my client that she would not be able to qualify for the EIC because her income does not support the 50% support test.

Since the children did not live with their father, he would not be able to claim the exemption for any of them.
I am thinking of filing her taxes and only claiming the son but not for the EIC.

Any suggestion would be appreciated.

Thanks.
#1;child support of $8.4k is not earned income.but You can elect to have your nontaxable combat pay included in earned income for EITC. The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q

My thinking is as follows:

1. The daughter should file her own taxes and claim any education credit.=========>>>>> I assume that she is her dependent, qualifying child, then, yes she needs to file her return as a dependent since her gross income of $6K+$300 exceeds her std deduction of $6.1K for 2013. If she can be claimed as a dependent on another person's tax return she cannot claim an education credit herself. Rather, that credit would go to the person who can claim her. If she cannot be claimed as a dependent, and if she is attending an eligible educational institution, she will likely qualify for an education credit.

However, unless she is claimed as a dependent, she doesn’t need to file her return due to lower income of $6K for 2013 as $6K<$10K.owever, if she has Federal taxes withheld from her wages for this tax year and wish to get a refund back, then she needs to file her return. Or aslongas she is entitled to the Earned Income Tax Credit or received Advance Earned Income Credit for this tax year.
2. Suggesting to my client that she would not be able to qualify for the EIC because her income does not support the 50% support test.=====>>>>>>>>>>>>it depends; her child must meet only the relationship, age, residency, and joint return tests, not support test for eitc. a qualifying child does not have to meet the support test for eic.

Since the children did not live with their father, he would not be able to claim the exemption for any of them.=========>>>>>>>>correct;no Residency test met in this case.


I am thinking of filing her taxes and only claiming the son but not for the EIC.=======>>>>>>>it depends.as mentioned above



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