how much do you have to earn before you can file and claim the unearned income credit with one child for this?

Question

My dayghter is 19 and has 5 month old daughter but has only worked a few months last year, making about $1000.00 can she file

Answer 1

What you might be better off doing is if YOU claim the grandchild. As long as you paid over half of their living expenses you can claim the grandchild. Living expenses include housing, utilities, food etc. Your daughter makes too much in a year for you to claim her. Sometimes even when children are over 18 you can claim them if you paid most of their expenses.

Look at this example taken directly from the IRS.GOV website (see the link below)
Example 1—child lived with parent and grandparent.

You and your 3-year-old daughter, Jane, lived with your mother all year. You are 25 years old and earned $9,000 for the year. Your mother is not your dependent. Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, and support tests for both you and your mother. However, only one of you can claim her. You agree to let your mother claim Jane. This means your mother can claim Jane as a dependent and can claim her as a qualifying child for the child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if she qualifies for each of those tax benefits (and if you do not claim Jane as a dependent or as a qualifying child for any of those tax benefits).

I had a baby when I was 21 and even though I worked full time I did live in my parents house so I agreed to let my father claim my daughter because in that case he made about $100k a year and I made about $22k. So we figured what my refund would be if I filed alone then we figured how much he would pay if he didn't claim her and if he did and the difference between what he would have to pay claiming her and how much he would get refunded was huge. In my personal case my dad just gave me the amount of money I would have received as a refund, but it saved him a ton of money on his return. My advice is to "test" how much you would both be getting back depending on who claims who and decide from there. You can use the website http://www.taxact.com to do the calculations BUT I don't suggest using that site to file with unless you made over $52k. If you made under $52k you can use Free File on the IRS website starting January 16th.

Answer 2

As long as she has less than $2700 of unearned income (like interest, investment etc) then she can file and received earned income credit.

Because she doesn't have much earned income, her credit will be around $350. Her maximum earned income credit will kick in if she has $7800 earned income (something for her to plan for next year).

If she was a full time student, you might consider claiming her and the baby as your dependents, and see if that would give you all better tax advantages.

Best wishes.

Answer 3

Yes, she can file, and would be eligible for the EIC.

Eccentric brings up a good point that if they lived with you and you supported them, then you might also be eligible to claim the baby, and the benefits on your return might be higher than your daughter would get from the EIC, since she would get nothing from the child tax credit. Figuring it both ways will tell you which is best.

Answer 4

Yes, she can file. I am in the same situation. I will get about $350 back for Earned Income Credit. (I made $840 last year). I had 2 children

Answer 5

you both may benefit better if you claim them both when you file. she'll get a small return, but you'll do better especially if your providing for them. she can save her 2006 w2 and file it with next years taxes provided she is working. you have up to 3 years to claim and file taxes.