Claiming child when income is super low and mother living with her dad

[10409000]

Hi all, I got a letter from the IRS about being extra cautious on EIC.. so I have a client she worked for uber only made $1,500 she wants to file taxes and claim her daughter. I asked if she had other income and she stated no. I asked who paid for the rent utilities etc cost of living and she said her dad so i told her based on that the grandpa (her dad and child's grandpa) needs to claim her his income is over 80k and she declined and told me no. I told her i don't believe she is eligible to claim EIC or CTC for her daughter and told her i will get back with her. Can you guys please confirm if i am correct? She is not eligible since she did not support her daughter and lives with her dad. Some facts she is 25 not a student and receives child support to buy food and clothes. but grandpa pays mortgage utilities etc.

[TaxGuyBill · Accepted solution]

Did Dad pay for over 1/2 of her support?  If so, she is his dependent, and therefore she can't claim any dependents on her tax return.

If Dad did not pay for over 1/2 of her support (and therefore your client is not Dad's dependent), her income is too low to claim the Child Tax Credit.

Is $1500 her gross income?  Or is that after expenses, such as vehicle expenses?  If that is her gross income, the expenses will lower that quite a bit, and EIC will likely be fairly small.

[10409000]

Thank you. Yes he paid over 1/2 her support. the 1500 was her gross income on the 1099. Yes I told her she cannot claim her daughter due to the support issue. 

[taxes96786]

She would qualify for her own EIC if she wasn't a dependent of her dad. She needs to give him an authorization form to take her daughter as his dependent if he, in fact, paid more than 1/2 support for both.