Tax question

[hagatha]

Soc,

My 20 yr old daughter had a baby 12/17. She still lives with me and at this point I am the sole support for both daughter and grandchild.

I usually get to file for EIC as my income is under 10,000 per yr.

1. Can my new grandchild be used as a deduction under EIC even though she was born the end of december?

2. Can I allow my daughters dad to take her as a deduction on his taxes?

Thanks
The Witch

[socrateaser]

>1. Can my new grandchild be used as a deduction under EIC even
>though she was born the end of december?

Based on your facts, Yes.

(thanks to other posters' research)

>
>2. Can I allow my daughters dad to take her as a deduction on
>his taxes?

(assuming you meant "granddaughter's dad", in the above question)

No., But, your daughter can, if she signs IRS form 8223 in favor of the other parent.

[lovebug]

You can claim your granddaughter even though she was born in December. A child born during a year is consider to have lived with you all year. So put 12 months on the EIC form. If your daughter had income during the year she can claim the child if the child is in her custody. If there is no custody order then your daughter can probably still claim her daughter. You can claim a child for EIC as long as you meet the age, residency and relationship test. If you daughter had no income and it would be beneficial fopr you to claim the child then you can do that. Also, I would at least try to work something out with the father if there is not an order and you are on good terms maybe split the EIC between you.  If there is not an order he would need to sign the form 8223 to allow you to take the credit and to cover yourself.


Here's a web page for more information: http://www.irs.gov/publications/p596/ch02.html#d0e1413

Hope this helps a little!

~D~

[patton]

Is the baby's father in the picture at all?

The reason I ask this is that I was able to claim the EIC credit on my son when I did not have custody, because the mother did not work and have any income (lived with her mother, much like your daughter does).

And the Mother or Father will override the grandparents claiming the EIC exemption.

Of course you still have to show some paperwork the IRS requests, but that was relatively easy to do in my case.

[lovebug]

This is true but the person filing would still have to meet the age, residency and relationship test. In order for the father to claim the child the child would have to have resided with the father 51% of the time since the child's birth since the child was born during the income tax year. If the child had not been born this year the father would have had to have had the child 6 months plus 1 day or at least 1 day longer then the mother or grandparent.

If the father did not have the child 51% of the time then he cannot claim the credit. EIC and dependant exemption have differnt rules. Technically she can claim the child for EIC and not claim the child as a dependant.

[patton]

Yes I definately met all of that criteria.


I'm not looking at it right now, but I was sure in there somewhere a natural parent got the exemption instead of the grandparent.

[patton]

Birth or death of child.   A child who was born  in 2004 is treated as having lived with you for all of 2004 if your home was the child's home the entire time he or she was alive in 2004.



EIC.....here's that part that disqualified the grandparent in my case, plus I could prove I have the child over 51% of the time, which the child did not even live there at her home but maybe 4 months of that year.


None of the persons are the child's parent  

Only the person with the highest AGI can treat the child as a qualifying child.