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Old 01-27-2014, 08:26 AM
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Claiming daughter

Hi, 1st post here. Here's my question. My wife & I file a joint return. We have a daughter age 22. In Jan. 2013 she had a baby & is single. She & the baby lived with us for approx. 7 mos. last year & she made less than $4,000 working part time. If we claim her as a dependent on our return, can my daughter claim the baby on her own return as a dependent for the child tax credit & possibly for the eitc? Thanx for your help.



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Old 01-27-2014, 11:38 AM
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Originally Posted by kpg7121 View Post
Hi, 1st post here. Here's my question. My wife & I file a joint return. We have a daughter age 22. In Jan. 2013 she had a baby & is single. She & the baby lived with us for approx. 7 mos. last year & she made less than $4,000 working part time. If we claim her as a dependent on our return, can my daughter claim the baby on her own return as a dependent for the child tax credit & possibly for the eitc? Thanx for your help.
in general, if your daughter is claimed as your dependent, as a qualifying child, by you on your return, then, she can’t claim EITC on her child on her retur;.however, in your case, I guess your daughter is claimed as a dependent, as a qualifying relative, NOT as a qualifying child, so she may claim her EIC.since she has her child, and cannot be a qualifying child of another person, you,she can claim her EITC on her return . please contact the irs for more info in detail.

Note;you can't claim a dependent if you can be claimed as a dependent by another taxpayer. And the rules for claiming the EIC with a qualifying child say that you can't be a qualifying child of another person. The tests for a qualifying child do not say anything that they have to be a dependent. So it would probably depend on what kind of dependent you are - if a qualifying child, no, if a qualifying relative, then maybe. If someone other than the 1st-mentioned dependent takes the exemption for the child, then the dependent can't take the EIC based on that child.So in most cases, no, but there could be unusual combinations of circumstances where it would be possible.



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Old 01-27-2014, 05:51 PM
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Ok thanx for the reply. Think I got it. Another question. The father of the baby has overnite visits 3 times per week, but the baby's legal address is my home since my daughter & the baby now reside here. Who gets to claim the baby as a dependent? Can he go ahead & claim her? I think the IRS says the parent that has the baby the majority of the time, but I'm not sure.



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Old 01-27-2014, 06:23 PM
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Thanks for the reply. Another question. The father of the baby has overnite visits 3 times @week. Legally & by IRS rules who gets to claim the baby as a dependent? My daughter & the baby now reside in my home & this is their legal residence. I believe that according to IRS rules my daughter is the one who has the right to claim the baby, but I'm not sure.



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Old 01-28-2014, 05:21 AM
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Originally Posted by kpg7121 View Post

#1; The father of the baby has overnite visits 3 times @week. Legally & by IRS rules who gets to claim the baby as a dependent? My daughter & the baby now reside in my home & this is their legal residence.


#2;Can he go ahead & claim her?

#3;I believe that according to IRS rules my daughter is the one who has the right to claim the baby, but I'm not sure.
#1;Did they get a divorce?? If not, and they file separate returns, I mean MFS, none of them claims the EITC. However, even if your daughter, as a custodial parent, may release the dependency to him by signing a form 8332. He CANNOT claim the EIC if he is not the custodial parent and meets the criteria as set down by the IRS in their rules thereto apertaining. If he tries for the EIC and doesn't meet the IRS requirements the penalties and price tag will really come back . EIC stays with custodial parent.ONLY she can, for head of household unless she is claimed by you on yur return, EIC and child care credit as long as your daughter meets the rules for those claims. He can't claim the child for EIC or HoH or child care credit.I guess he can claim only child tax credit only if the custodial parent, may release the dependency to him.

#2;As mentioned above. her qualifying child cannot be used by more than one person to claim the EIC. the qualifying children rules for the earned income credit requires a taxpayer to meet the requirements; Relationship test; Age test; Residency test, and Joint return test.

#3;Corrrect; a custodial parent is the parent with whom a child resides with full time. Most custodial parents have been awarded physical custody of a child by a court of law. Generally, a custodial parent is also considered the primary care parent. He or she usually assumes the responsibility of providing all of the essential needs for the child. This may include providing shelter, clothing and food. There are typically situations which lead to a person becoming a primary custodial parent. In most cases, the role is awarded following a legal separation or divorce. The parent chosen to be the custodial parent is usually the one who has shown that he or she can most adequately meet all of the needs of the child. In addition to feeding, clothing and providing a suitable residence, the parent may also need to show that he or she will provide a stable environment. This may mean that the parent will not be traveling often with or without the child, so that he or she can settle into one primary place of residence.

Note; certain situations may call for adjustments to be made as in who the custodial parent is. For instance, if the parent with whom the child resides full time becomes ill and is no longer able to take care of the child, the noncustodial parent may have to assume the role as the primary care giver. If the primary care parent fails to continuously provide a stable environment for the child, the agreement may be changed as well. This may include the parent taking on a job requiring him or her to travel a lot or if he or she frequently changes residences. Additionally, if the child decides that he or she wishes to reside full time with the noncustodial parent, this may be another reason for the parental roles to change.



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Old 01-28-2014, 06:18 PM
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Originally Posted by Wnhough View Post
#1;Did they get a divorce?? If not, and they file separate returns, I mean MFS, none of them claims the EITC. However, even if your daughter, as a custodial parent, may release the dependency to him by signing a form 8332. He CANNOT claim the EIC if he is not the custodial parent and meets the criteria as set down by the IRS in their rules thereto apertaining. If he tries for the EIC and doesn't meet the IRS requirements the penalties and price tag will really come back . EIC stays with custodial parent.ONLY she can, for head of household unless she is claimed by you on yur return, EIC and child care credit as long as your daughter meets the rules for those claims. He can't claim the child for EIC or HoH or child care credit.I guess he can claim only child tax credit only if the custodial parent, may release the dependency to him.

#2;As mentioned above. her qualifying child cannot be used by more than one person to claim the EIC. the qualifying children rules for the earned income credit requires a taxpayer to meet the requirements; Relationship test; Age test; Residency test, and Joint return test.

#3;Corrrect; a custodial parent is the parent with whom a child resides with full time. Most custodial parents have been awarded physical custody of a child by a court of law. Generally, a custodial parent is also considered the primary care parent. He or she usually assumes the responsibility of providing all of the essential needs for the child. This may include providing shelter, clothing and food. There are typically situations which lead to a person becoming a primary custodial parent. In most cases, the role is awarded following a legal separation or divorce. The parent chosen to be the custodial parent is usually the one who has shown that he or she can most adequately meet all of the needs of the child. In addition to feeding, clothing and providing a suitable residence, the parent may also need to show that he or she will provide a stable environment. This may mean that the parent will not be traveling often with or without the child, so that he or she can settle into one primary place of residence.

Note; certain situations may call for adjustments to be made as in who the custodial parent is. For instance, if the parent with whom the child resides full time becomes ill and is no longer able to take care of the child, the noncustodial parent may have to assume the role as the primary care giver. If the primary care parent fails to continuously provide a stable environment for the child, the agreement may be changed as well. This may include the parent taking on a job requiring him or her to travel a lot or if he or she frequently changes residences. Additionally, if the child decides that he or she wishes to reside full time with the noncustodial parent, this may be another reason for the parental roles to change.
Thank you, WN for taking the time to respond. My daughter & the father of my granddaughter were never married. Baby was born out of wedlock. However, he does pay child support, which ain't much & health ins. My daughter is concerned that he'll jump the gun & claim the baby on his return. And I do believe & I'm not sure but I think that the court papers say joint custody. He has her 3 times per week & lives with his parents.



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Old 01-28-2014, 06:34 PM
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Originally Posted by kpg7121 View Post
Thank you, WN for taking the time to respond. My daughter & the father of my granddaughter were never married. Baby was born out of wedlock. However, he does pay child support, which ain't much & health ins. My daughter is concerned that he'll jump the gun & claim the baby on his return. And I do believe & I'm not sure but I think that the court papers say joint custody. He has her 3 times per week & lives with his parents.
When filing taxes separately, only one of a child's unmarried parents can claim the child for credits and deductions; if a child's parents are living apart, the custodial parent , the parent with whom the child has lived the longest , has the right to claim her as a dependent. The non-custodial parent can claim her as a deduction only if other parent executes Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, which releases all rights to claim child exemptions. In such a case, the non-custodial parent submits this form along with his tax return. however, if an unmarried couple cannot agree upon who can claim their child as a deduction, the IRS applies the “tiebreaker” criteria. This means that the IRS will apply the tax benefits to the return of the parent with the longest custody. If both parents shared custody equally, the IRS chooses the parent with the highest agi.



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