Eic

[MomIsWorried]

What is the name of your state? Ohio

I am a tax preparer ... have taken the classes, taught a class, and this is my second year as a paid preparer ... and I'm stumped.

A non-married couple has lived together for 10 years. Man has 2 children from previous marriage that he has custody of and claims on his taxes. The couple has 2 children together. Mom went back to work last year and worked part time.

Man made $16,000 last year
Woman made $13,000 last year

Man wants to file HOH and claim his 2 children for EIC.
Woman wants to file Single and claim their 2 children for EIC.

Can they do this? Isn't the rule that only one person per household can claim EIC?

 

[Snipes5]

Oddly enough, I saw the very same problem last Wednesday.

Yes, they can do this.

No, there is no rule that only one person per household can claim EIC.

Only one person per household may file as HOH, but that is the only such rule in this case.

Also keep in mind that if all four kids were hers alone, NO ONE would be able to file as HOH, and HE would not be able to claim any of the kids.

After having three lectures on it, and going over it numerous times, I finally understand the new Uniform Definition of a Child. I feel like I've won the damn lottery.

Snipes

 

[LdiJ]

Oddly enough, I saw the very same problem last Wednesday.

Yes, they can do this.

No, there is no rule that only one person per household can claim EIC.

Only one person per household may file as HOH, but that is the only such rule in this case.

Also keep in mind that if all four kids were hers alone, NO ONE would be able to file as HOH, and HE would not be able to claim any of the kids.

After having three lectures on it, and going over it numerous times, I finally understand the new Uniform Definition of a Child. I feel like I've won the damn lottery.

Snipes

I echo that....its been a real bear...

 

[MomIsWorried]

Thanks Snipes. It is confusing as hell.

Another woman just came in and asked the same question. She tried to go back to work last year, and it didn't work out - so she only worked about a month (about $1000 in income) ...

Since her boyfriend provided more than half of the support for her and her 3 children ... can't he claim them all to get the exemptions, but not for EIC purposes on the children?

I will eventually completely understand this ... of course, by then they will have changed things again.

 

[LdiJ]

Thanks Snipes. It is confusing as hell.

Another woman just came in and asked the same question. She tried to go back to work last year, and it didn't work out - so she only worked about a month (about $1000 in income) ...

Since her boyfriend provided more than half of the support for her and her 3 children ... can't he claim them all to get the exemptions, but not for EIC purposes on the children?

I will eventually completely understand this ... of course, by then they will have changed things again.

From everything that I have been able to review, no, he cannot claim them.

 

[Snipes5]

He can claim her if her income was less than $3200, but if he does claim her, she can't get EIC for the kids.

She can get EIC with her $1000 of earned income. You will have to do it both ways to see which is more beneficial for the household.

Snipes