Who is a qualifying child for Earned Income Tax Credit?
Q) Who is a qualifying child for Earned Income Tax Credit?
A) According the to IRS – Your child is a qualifying child if your child meets all of the following tests:
- Age
- Relationship
- Residency
- Joint Return
Age
Your child must meet one of the following:
- Be under age 19 at the end of the year and younger than you or your spouse, if you file a joint return
- Be a full-time student under age 24 at the end of the year and younger than you or your spouse, if you file a joint return, or
- Be permanently and totally disabled at any time during the year and any age.
Relationship
To be your qualifying child, a child must be your:
- Son, daughter, stepchild, eligible foster child, or a descendant of any of them (for example, your grandchild), or
- Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew).
Definitions to clarify the relationship test
Adopted child. An adopted child is always treated as your own child. This includes a child who was lawfully placed with you for legal adoption.
Eligible Foster Child. A person is your eligible foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.
Residency Test
Your child must have lived with you, or your spouse if you file a joint return, in the United States for more than half of the year.
Joint Return Test
Your child must not have filed a joint return or if your child filed a joint return, your child and his/or her spouse filed only to claim a refund and were not required to file.
See Publications 596, 596(SP) and 501 for more details
Who is an eligible foster child?
An eligible foster child is one placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.
Because the IRS processes the first return it receives, if another person claims your dependent first, the IRS will reject your return. The IRS won’t tell you who claimed your dependent. But if you don’t suspect anyone who could have claimed the dependent, your dependent may be a victim of tax identity theft. You’ll need to take some steps to protect your right to claim the dependent and your refund if you don’t think that the other person was eligible to claim your dependent. First, double check that you meet all of the requirements to claim the dependent.
The IRS may delay your refund while the IRS looks into the issue, but you should still receive your refund. File a paper return. Note that when you file a paper return, it can take six to eight weeks for the IRS to process. This includes things like birth certificates and proof of identity, but also documents that show that your dependent lived with you at the same address for more than half of the year. This doesn’t mean that you can’t correct the situation. Don’t panic. The most important thing to remember is to prove with proper documentation that you are entitled to claim the dependent. Document your case as the IRS rules for claiming a dependent can get complicated.