Who is eligible for the earned income tax credit when both a child and a grandchild live with the grandparents of the grandchild?
A qualifying child for the earned income tax credit (EITC) must meet three tests: Age, relationship and residency. Your son or daughter or lineal descendant of your son or daughter pass the first two tests if he/she is either under age 19 or under age 24 and a full time student. The qualifying child must also reside with you in your home for more than six months of the year. Temporary absences for illness or school are okay. It is possible under the living conditions that you describe, for the child to be a qualifying child for the parent and also be a qualifying child for the grandparent. In these cases either the parent or grandparent can claim the EITC assuming that all the other rules for the EITC are passed. If both want to claim the EITC, the tie-breaking rule states that the EITC goes to the parent.
A qualifying child for the earned income tax credit (EITC) must meet three tests: Age, relationship and residency. Your son or daughter or lineal descendant of your son or daughter pass the first two tests if he/she is either under age 19 or under age 24 and a full time student. The qualifying child must also reside with you in your home for more than six months of the year. Temporary absences for illness or school are okay. It is possible under the living conditions that you describe, for the child to be a qualifying child for the parent and also be a qualifying child for the grandparent. As such, all the tax benefits that go with having a qualifying child accrue to the taxpayer having the qualifying child. The rule would give all those benefits to the parent. If the parent disclaims those benefits, you would be eligible to claim them as long as you had a higher AGI then the parent. These benefits would include claiming the dependency exemption, EITC, child tax credit if the child is
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