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Level 2
January 29, 2021
Question

EITC

  • January 29, 2021
  • 3 replies
  • 12 views

Two unmarried taxpayers who live together have a child. One has income of $85K and one has income of $35K. Can the taxpayer with income of $35K claim the earned income tax credit?

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3 replies

TAXOH
Level 10
January 29, 2021

Yes.  That person would file single, claim the exemption for the child and all other tax credits related to the child.  The higher income earner would also file single.

Level 5
January 29, 2021

As long as they both agree since the taxpayer with the higher income holds the tiebreaker in the case where both tried to claim this dependent.  (all other factors being equal such as time lived with the dependent)

Level 5
January 29, 2021

If they are both the biological parents, yes.  Make sure you have copy of birth certificate (per circular 230).

Yes, the taxpayer with lower income should claim the child.  Make sure the other requirements are there met

Relationship, age, residency, support. 

Level 5
January 29, 2021

Support is not a factor with a QC only with a QR