My daughter had a baby this fall.. since he was born (and before that) I have paid the unsubsidised rent, utility bills, day care while my daughter worked for a short time and purchased most of his clothing,diapers etc.. So except for the state aid help, she does not get child suport.. I have paid most, if not all of his support. They do not live with me but I pay the bills. Would this qualify him as my dep?
Also, she does have 2 other childern who are claimed by their father.. she only has $1500 in earned income for the year. If the baby would qualify as my dep, would she still be able to claim EIC?
Thanks for any help

Is your daughter filing a tax return this year? If she is, then she will probably be claiming her son. Why don't you talk to her about it? If she doesn't claim him and no one else can legally claim him as an exemption, I don't think there is a legal problem with you doing that. You have paid for the bulk of his care. If you have all the receipts, it should not be an issue.

I think she may file but does not need him for deduction.. she would only benefit with EIC? Can she file EIC without using him as dep

No. If she files an EIC, that form is specifically designed for a dependent child. She should be filing a 1040 and not list him at a dependent at all for you to be able to take advantage of this.

Quote:

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Originally Posted by grmaer

My daughter had a baby this fall.. since he was born (and before that) I have paid the unsubsidised rent, utility bills, day care while my daughter worked for a short time and purchased most of his clothing,diapers etc.. so except for the state aid help, she does not get child suport.. I have paid most, if not all of his support. They do not live with me but I pay the bills. Would this qualify him as my dep?
Also, she does have 2 other childern who are claimed by their father.. she only has $1500 in earned income for the year. If the baby would qualify as my dep, would she still be able to claim EIC?
Thanks for any help

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No, my parents claim my son as we live with them. We were told that either I could claim him or them but not both.

She would not be claiming him as dep..
I was just questioning if she could still file EIC because I know that when I got divorced, my ex husband claimed the kids as his deps but I claimed them for EIC as they lived with me... according to the EIC forms my grandson does meet all the requirements for his mother to file EIC, age residency (he does live with her) and relationship for her to claim the EIC.. I would not be filing EIC... I will do some more checking to make sure

Thanks for the responses

grmaer, I am sure one of the CPA experts will stop by this post and offer up his advice. Sometimes it can take a couple of days but I am pretty sure they will see this posting.

Okay, Grmaer, you CAN claim your grandson as a dependent if you provided the support you stated and if neither parent claims the child.

Further, you can also claim your daughter as a dependent since she made less than $3,300 in 2006. In fact, claiming your daughter as a dependent makes impossible for her to claim her son as a dependent.

However, do this MAY endanger some of her state aid, because the state may take the position that they need not provide the aid if you are claiming them as a dependent. A phone call to the state aid department should clear that up.

A.T.E. I am having some difficulty rating you. Although the program allows me to, it is dragging and I keep getting an error message. So, I will try again later.

Just wanted to say: A.T.E. to the rescue! Thank you so much. grmaer added in the "Also...EIC" portion of her original question after I had initially answered it. My thought was that she should claim both as you suggest but since the daughter is on state aid, I didn't think it wasn't possible.

Thanks again!

Thanks a lot for all your help. Sorry about adding to the post, I think I was adding to it while you were answering.. I just wanted to clarify the question. :p

No problem grmaer. I was just letting Atlanta Tax Expert know why I didn't include the EIC info as part of my original response. No harm done sweetie! :)

No problem all! Glad to help!

If mom claimed her grandson all year can his mother claim him at the end of the year?

Only one person may claim a person as a dependent for a given year. There is no provision that allows a person to claim a dependent for only part of the year.