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#1
03-02-2005, 07:31 PM
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Pay back of EICWhat is the name of your state?What is the name of your state? Texas If there are divorced parents and the lady claims a child under 19 as a dependent and collects an Earned Income Credit for the tax year 2003 but in 2004 she lets the man claim the child as a dependent and now the child is 19 (turned 19 during tax year 2004). The man paid the lady(exwife) $100 for allowing him to claim the child as a dependent. Is this statute for fraud and does the Lady have to payback the EIC with penalties and interest or is this perfectly legal? |
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#2
03-02-2005, 07:49 PM
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| Provided the man and lady are the divorced parents, and the child lived with the lady, and the child was a full time student for the year he/she was 19, yes, this is perfectly legal. The lady can let the man claim the dependency exemption, either for free or for money. She should have gotten more; the dependency is more valuable than $100, and she can claim the EIC. The man cannot claim the EIC, unless the child lived with him, but then the whole situation would be reversed. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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#3
03-02-2005, 08:36 PM
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| Ok, but what if the child is not a full time student? Does this change? |
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#4
03-02-2005, 09:26 PM
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| If the 19yo was not a full time student for at least 5 months of the calendar year, then no one can get EIC for that child. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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