Claiming child when income is super low and mother living with her dad

Forum|Forum|3 years ago
February 8, 2023
2 replies
26 views

Hi all, I got a letter from the IRS about being extra cautious on EIC.. so I have a client she worked for uber only made $1,500 she wants to file taxes and claim her daughter. I asked if she had other income and she stated no. I asked who paid for the rent utilities etc cost of living and she said her dad so i told her based on that the grandpa (her dad and child's grandpa) needs to claim her his income is over 80k and she declined and told me no. I told her i don't believe she is eligible to claim EIC or CTC for her daughter and told her i will get back with her. Can you guys please confirm if i am correct? She is not eligible since she did not support her daughter and lives with her dad. Some facts she is 25 not a student and receives child support to buy food and clothes. but grandpa pays mortgage utilities etc.

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Best answer by TaxGuyBill

Did Dad pay for over 1/2 of her support? If so, she is his dependent, and therefore she can't claim any dependents on her tax return.

If Dad did not pay for over 1/2 of her support (and therefore your client is not Dad's dependent), her income is too low to claim the Child Tax Credit.

Is $1500 her gross income? Or is that after expenses, such as vehicle expenses? If that is her gross income, the expenses will lower that quite a bit, and EIC will likely be fairly small.

T

TaxGuyBillAnswer

Level 15

Did Dad pay for over 1/2 of her support? If so, she is his dependent, and therefore she can't claim any dependents on her tax return.

If Dad did not pay for over 1/2 of her support (and therefore your client is not Dad's dependent), her income is too low to claim the Child Tax Credit.

Is $1500 her gross income? Or is that after expenses, such as vehicle expenses? If that is her gross income, the expenses will lower that quite a bit, and EIC will likely be fairly small.

1

10409000Author

Level 4

Thank you. Yes he paid over 1/2 her support. the 1500 was her gross income on the 1099. Yes I told her she cannot claim her daughter due to the support issue.

T

taxes96786

Level 8

She would qualify for her own EIC if she wasn't a dependent of her dad. She needs to give him an authorization form to take her daughter as his dependent if he, in fact, paid more than 1/2 support for both.

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