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Step 1
If you qualify for the earned income credit, and have an income of about $12,000 to $15,000, did you know that you can let someone else claim your child as a dependent (like the father/mother or grandparents), and you can still claim them for EIC? When you file your tax return, DO NOT claim the chid as a dependent. If your income is around $12,000 to $15,000, your tax liability will probably be $0 and you will be entitled to the maximum EIC for 1 child or 2 children.
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Step 2
The parent or grandparent can claim the child as a dependent on their tax return. This is very helpful, as many single parents have financial support from the other parent of the child or the grandparents, yet only 1 person can claim the child as a dependent on their tax return; If their income is over the EIC qualifying limit this allows them to take the deduction for the child, while letting you still receive your EIC.
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Step 3
Make sure social security numbers are correct. If you e-file, wrong social security numbers will reject out of the system. This is a very helpful system that solves disputes between families. I worked for the IRS for 10 years and I cannot tell you how many fights I saw over this issue!!!
Comments
rayray10 said
on 7/10/2009 even if the other parent lives with you -- not married
toniasfour said
on 11/13/2008 Yes, I worked for the Internal Revenal Service for 10 years. You can check with a tax consultant.
CBPope said
on 11/10/2008 Is this legal?