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September 11, 2021
Question

Why didn't I qualify for the earned income credit for my minor daughter?

  • September 11, 2021
  • 2 replies
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2 replies

September 11, 2021

The are many requirements that need to be met.  The IRS provides this Earned Income Interactive Assistant.  

 

Go through the screens and answer the questions to find out which qualification(s) you did not meet.

Hal_Al
Employee
September 11, 2021

The non-custodial parent does not qualify for the EIC, even when he is claiming the child as a dependent.

 

 There is a special rule in the case of divorced & separated (including never married) parents. When the non-custodial parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. This "splitting of the child" is not available to parents who lived together at any time during the last 6 months of the year; then only one of you can claim the child for any tax reasons. The tax benefits may not be split in any other manner.

Note in particular that the non-custodial parent can never claim the Earned Income Credit, Head of Household filing status or the day care credit, based on that child, even when the custodial parent has released the dependency to him.

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For tax purposes, there is no such thing as joint custody, regardless of what your legal agreement says. The requirement, to be custodial parent, is that the child live with you MORE than 50% of the time. One of you has to be the custodial parent and the other the non-custodial parent. The IRS goes by physical custody, not legal custody.