my daughter lives with me and is a college sudent age 21yrs old and we estimated the she will have earned 11,000.00 because she works and i estimate that iwill have earned at least 24,00.00 or 25,000.00 can i still claim her as a dependant and get the earned income credit
2007-11-11 13:45:50 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
As I indicated in my previous answer, your daughter is a qualifying child for the EIC. Now that you have added the information that she lives with you, it is clear that she does qualify you to claim the EIC. You can get the EIC based on your daughter even if you do not claim your daughter as a dependent.
The new issue you raise is whether you can claim your daughter as a dependent. This depends on whether your daughter provided over half of her own support.
If your daughter provided over half of her own support, then she will claim herself on her tax return. If she did not provide over half of her own support, she may not claim herself on her tax return, and she qualifies you to claim her as a dependent on your tax return.
2007-11-11 15:31:31 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Rules for claiming your daughter as dependent child.
1. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student.
2. The child must have lived with you for more than half of the year.
3. The child must not have provided more than half of his or her own support for the year.
4. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
Also if you claim your daughter as your dependent, she will not get her exemption. She must file as Dependent. If both you claim the exemption, both of you will get letters from IRS. One of you will have to file amended return and pay interest and penalty. So you should discuss your position with your daughter.
For EIC it is not necessary that you have a dependent. Yes the EIC amount increases with dependents and also AGI limit increases.
2007-11-12 03:09:40 · answer #2 · answered by MukatA 6 · 1⤊ 0⤋
If she spent all of her income on her own support, you might have a hard time showing that she didn't provide over half of her own support. If she did, then you can't claim her. If she spent the money on education expenses, those are considered to be part of support.
Whether she can be claimed as a dependent or not, though, you can claim her for EIC.
2007-11-11 23:00:20 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If she can be claimed as your dependent her income doesn't enter into your EIC eligibility.
2007-11-11 21:54:00 · answer #4 · answered by ? 5 · 0⤊ 2⤋