Both parent claimed EIC

[wannaluvlife]

What is the name of your state? CA

I received a letter from the IRS stating myself and my baby's father claimed our child for the EIC credit for taxed last year. How does it works if either of us had paperwork to claim custody of the child at time of filing??? I gained custody a month after I filed? Are we both going to be fined?

 

[abezon]

For tax purposes, the custodial parent is the parent with whom the child actually spent the most time. Court orders are irrelevant.

The first question is whether either of you were allowed to claim EIC for the child. To qualify for EIC, the child must live with the parent for over 6 months.

If both parents are qualified to claim the child for EIC, the IRS awards the EIC to the parent with whom the child spent the longer period of time. If the child lived with the parents equal lengths of time, the parent with the higher AGI gets the EIC.

You should gather evidence that your child lived with you longer than with dad. Look for medical records, day care records, insurance forms, public assistance claim forms, etc. They will list the child's address & custodial parent.

 

[dallas702]

And, make sure your income qualifies you to have the EIC. There are incomes from sources that disallow the credit. ...something the logic of which escapes me. Ex: if a parent has a "j-o-b" and makes $20K with a qualifying child he/she can get the EIC. But, if that same parent makes his/her income from a source such as a retirement account, pension, or investment, with the same qualifying child...he/she gets nothing. So, how does a (retired) grandparent or parent raising children and paying the same amount of income and all other taxes become less qualified to get a credit which is basically allowed for low income parents? Thank you IRS and Congress.

Anyway, use the qualifying form and follow the rules or the IRS will take it back. If the other parent and you are able to work on issues like this without throwing bricks it would be more advantageous for you to let the parent who gets the most make the claim and then share the difference (for the child of course).