Table of Contents
- Rule 8.
Rule 8. Your Child Must Meet the Relationship, Age, and Residency Tests
- Rule 8. . Relationship Test
- Rule 8. . Age Test
- Rule 8. . Residency Test
- Rule 9.
Rule 9. Your Qualifying Child Cannot Be Used By More Than One Person To Claim the EIC
- Rule 10. Rule 10. You Cannot Be a Qualifying Child of Another Person
If you have met all the rules in chapter 1, use this chapter to see if you have a qualifying child. This chapter discusses Rules 8 through 10 . You must meet all three of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit with a qualifying child.
You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. (You cannot file Form 1040EZ.) You also must complete Schedule EIC and attach it to your return. If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next.
Your child is a qualifying child if your child meets three tests. The three tests are:
The three tests are illustrated in Figure 2 on page 13. The paragraphs that follow contain more information about each test.
To be your qualifying child, a child must be your:
-
Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), or
-
Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew).
The following definitions clarify the relationship test.
Example.
Debbie, who is 12 years old, was placed in your care 2 years ago by an authorized agency responsible for placing children in foster homes. Debbie is your foster child.
-
You can claim the child's exemption, or
-
The reason you cannot claim the child's exemption is that you gave that right to your child's other parent under the Special rule for divorced or separated parents, described later.
Your child must be:
-
Under age 19 at the end of 2007,
-
Under age 24 at the end of 2007 and a student, or
-
Permanently and totally disabled at any time during 2007, regardless of age.
The following example and definitions clarify the age test.
Example.
Your son turned 19 on December 10. Unless he was disabled or a student, he is not a qualifying child because, at the end of the year, he was not under age 19.
-
A full-time student at a school that has a regular teaching staff, course of study, and regular student body at the school, or
-
A student taking a full-time, on-farm training course given by a school described in (1), or a state, county, or local government.
-
He or she cannot engage in any substantial gainful activity because of a physical or mental condition.
-
A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death.
Your child must have lived with you in the United States for more than half of 2007. The following definitions clarify the residency test.
-
The year there is a determination that the child is dead, or
-
The year the child would have reached age 18.
Social security number. Your qualifying child must have a valid social security number (SSN), unless the child was born and died in 2007. You cannot claim the EIC on the basis of a qualifying child if:
-
Your qualifying child's SSN is missing from your tax return or is incorrect,
-
Your qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or
-
Instead of an SSN, your qualifying child has:
If you have two qualifying children and only one has a valid SSN, you can claim the EIC only on the basis of that child. For more information about SSNs, see Rule 2.
Sometimes a child meets the rules to be a qualifying child of more than one person. However, only one person can treat that child as a qualifying child and claim the EIC using that child. The paragraphs that follow will help you decide who, if anyone, can claim the EIC when more than one person has the same qualifying child.
-
The child's exemption.
-
The child tax credit.
-
Head of household filing status.
-
The credit for child and dependent care expenses.
-
The exclusion for dependent care benefits.
-
The EIC.
Table 2. When More Than One Person Files a Return Claiming the Same Qualifying Child (Tie-Breaker Rule) Caution. If a child is treated as the qualifying child of the noncustodial parent under the special rule for divorced or separated parents described later, see Applying Rule 9 to divorced or separated parents, later.
IF more than one person files a return claiming the same qualifying child and .... | THEN the child will be treated as the qualifying child of the .... | |||
only one of the persons is the child's parent, | parent. | |||
two of the persons are parents of the child and they do not file a joint return together, | parent with whom the child lived the longest during the year. | |||
two of the persons are parents of the child, the child lived with each parent the same amount of time during the year, and the parents do not file a joint return together, | parent with the higher adjusted gross income (AGI). | |||
none of the persons are the child's parent, | person with the highest AGI. |
Examples. The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child.
Example 1.
You and your 2-year-old son lived with your mother all year. You are 25 years old. Your only income was $9,000 from a part-time job. Your mother's only income was $20,000 from her job. Your son is a qualifying child of both you and your mother because he meets the relationship, age, and residency tests for both you and your mother. However, only one of you can treat him as a qualifying child to claim the EIC (and, if that person qualifies, the other tax benefits listed on page 15). You agree to let your mother claim him. This means, if you do not claim your son as a qualifying child for the EIC or any of the other tax benefits listed on page 15, your mother can treat your son as a qualifying child to claim the EIC (and any other tax benefit listed on page 15 for which she qualifies).
Example 2.
The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child. In this case, you as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC and the other tax benefits listed on page 15. The IRS will disallow your mother's claim to the EIC and any other tax benefits listed on page 15 unless she has another qualifying child.
Example 3.
The facts are the same as in Example 1 except that you also have two other young children who are qualifying children of both you and your mother. Only one of you can claim each child as a qualifying child. However, you and your mother can split the three qualifying children between you. For example, you can use one child and your mother can use the other two.
Example 4.
The facts are the same as in Example 1 except that you are only 18 years old. This means you are a qualifying child of your mother. Because of Rule 10, discussed next, you cannot claim the EIC. Only your mother may be able to treat your son as a qualifying child to claim the EIC. If your mother meets all the other requirements for claiming the EIC and you do not claim your son as a qualifying child for any of the other tax benefits listed on page 15, your mother can treat both you and your son as qualifying children for the EIC.
Example 5.
The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son.
Example 6.
You, your husband, and your 10-year-old son lived together until August 1, 2007, when your husband moved out of the household. In August and September, your son lived with you. For the rest of the year, your son lived with your husband. Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship and age tests for both of you. At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the special rule for divorced or separated parents does not apply.
You and your husband will file separate returns. Your husband agrees to let you treat your son as a qualifying child. This means, if your husband does not claim your son as a qualifying child for any of the tax benefits listed on page 15, you can claim him as a qualifying child for any tax benefit listed on page 15 for which you qualify. However, you cannot claim head of household filing status because you and your husband did not live apart the last 6 months of the year. As a result, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. See Rule 3.
Example 7.
The facts are the same as in Example 6 except that you and your husband both claim your son as a qualifying child. In this case, only your husband will be allowed to treat your son as a qualifying child. This is because, during 2007, the boy lived with him longer than with you. You cannot claim the EIC for persons either with or without a qualifying child. However, because you and your husband did not live apart the last 6 months of the year, your husband cannot claim head of household filing status. As a result, his filing status is married filing separately, so he cannot claim the EIC or the credit for child and dependent care expenses. See Rule 3.
Example 8.
You, your 5-year-old son, and your son's father lived together all year. You and your son's father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, and residency tests for both you and his father. You earned $12,000 and your son's father earned $14,000. Neither of you had any other income. Your son's father agrees to let you treat the child as a qualifying child. This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed on page 15, you can claim him as a qualifying child for the EIC and any other tax benefit listed on page 15 for which you qualify.
Example 9.
The facts are the same as in Example 8 except that you and your son's father both claim your son as a qualifying child. In this case, only your son's father will be allowed to treat your son as a qualifying child. This is because his AGI, $14,000, is more than your AGI, $12,000. You cannot claim the EIC for persons either with or without a qualifying child.
Example 10.
You and your 7-year-old niece, your sister's child, lived with your mother all year. You are 25 years old, and your only income was $9,300 from a part-time job. Your mother's only income was $15,000 from her job. Your niece is a qualifying child of both you and your mother because she meets the relationship, age, and residency tests for both you and your mother. However, only one of you can treat her as a qualifying child. Your mother agrees to let you treat the child as a qualifying child. This means, if your mother does not claim her as a qualifying child for the EIC or any of the other tax benefits listed on page 15, you can claim your niece as a qualifying child for the EIC and any other tax benefit listed on page 15 for which you qualify.
Example 11.
The facts are the same as in Example 10 except that you and your mother both claim your niece as a qualifying child. In this case, only your mother will be allowed to treat your niece as a qualifying child. This is because your mother's AGI, $15,000, is more than your AGI, $9,300.
-
The parents:
-
Are divorced or legally separated under a decree of divorce or separate maintenance,
-
Are separated under a written separation agreement, or
-
Lived apart at all times during the last 6 months of 2007.
-
-
The child received over half of his or her support for the year from the parents.
-
The child is in the custody of one or both parents for more than half of 2007.
-
Either of the following statements is true.
-
The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches the form or statement to his or her return. If the divorce decree or separation agreement went into effect after 1984, the noncustodial parent can attach certain pages from the decree or agreement instead of Form 8332.
-
A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2007 provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2007.
-
For details, see Pub. 501. Also see Applying Rule 9 to divorced or separated parents, next.
Example 1.
You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Under the rules for children of divorced or separated parents, your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child if he meets all the requirements to do so. Because of this, you cannot claim an exemption or the child tax credit for your son. However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the EIC. You and your mother did not have any child care expenses or dependent care benefits, but the boy is a qualifying child of both you and your mother for the EIC and head of household filing status because he meets the relationship, age, residency, and support tests for both you and your mother. (Note: The support test does not apply for the EIC.) However, you agree to let your mother claim your son. This means she can claim him for the EIC and head of household filing status if she qualifies for each and if you do not claim him as a qualifying child for the EIC. (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home.)
Example 2.
The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child for the EIC. Your mother also claims him as a qualifying child for head of household filing status. You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child.
You are a qualifying child of another person (your parent, guardian, foster parent, etc.) if all of the following statements are true.
-
You are that person's son, daughter, stepchild, grandchild, or foster child. Or, you are that person's brother, sister, half brother, half sister, stepbrother, or stepsister (or the child or grandchild of that person's brother, sister, half brother, half sister, stepbrother, or stepsister).
-
At the end of the year you were under age 19, or under age 24 and a student, or any age if you were permanently and totally disabled at any time during the year.
-
You lived with that person in the United States for more than half of the year.
For more details about the tests to be a qualifying child, see Rule 8.
If you (or your spouse, if filing a joint return) are a qualifying child of another person, you cannot claim the EIC. This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Put “No” beside line 66a (Form 1040) or line 40a (Form 1040A).
Example.
You and your daughter lived with your mother all year. You are 22 years old and attended a trade school full time. You had a part-time job and earned $5,700. You had no other income. Because you meet the relationship, age, and residency tests, you are a qualifying child of your mother. She can claim the EIC if she meets all the other requirements. Because you are your mother's qualifying child, you cannot claim the EIC. This is so even if your mother cannot or does not claim the EIC.
More Online Publications |