Child Tax credit & Cash Assistance

[mosnet99]

My girlfriend and I had a kid but live seperately, she doesnt work and I kept our kid for most of the year. We decided that I should claim the child since I work. However, she received cash assistance from the state of michigan for our child. Can I still claim our child on my Michigan tax return?

 

[LdiJ]

My girlfriend and I had a kid but live seperately, she doesnt work and I kept our kid for most of the year. We decided that I should claim the child since I work. However, she received cash assistance from the state of michigan for our child. Can I still claim our child on my Michigan tax return?

You can, but you cannot claim earned income credit unless you are willing to throw your girlfriend under the bus for collecting welfare benefits when the child primarily lived with you. If you cannot prove, with hard evidence, that the child primarily lived with you then you couldn't claim EIC anyway.

What will happen is that both the IRS and Michigan will match your child's SSN to the welfare data base and will either deny you the EIC right off the bat, or wait about 8 months and then make you pay it back.

 

[mosnet99]

I tried searching and I don't see how its possible to claim a child as dependent and not EIC. Can you elaborate?

 

[mosnet99]

The dependency exception, but not the EITC or child tax credit?

 

[FlyingRon]

Parents can agree to give up the exemption (form 8332). However, EITC doesn't have that option. Further, don't mess with EITC if you are not 100% qualified for it, there is special IRS funding from congress to pursue cheats in this area.

 

[LdiJ]

I tried searching and I don't see how its possible to claim a child as dependent and not EIC. Can you elaborate?

Then use a tax professional to do your taxes, because its a very simple process for them. You get to claim the dependency exemption and the child tax credit. You do not get to claim Head of Household, daycare credits or EIC.