Discussion:Exemtion
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Exemtion
Budrok@Aol.com (talk|edits) said: | 15 February 2006 |
| Rare Situation. Scenero's don't seem to help. Here we go. 5 yrs ago Grandmom got custody of grandson (8yrs old) 2 years ago the childs Father moved in with his child and grandmom. Grandmom makes $16,000 and fully supports grandchild. The father makes $38,000 and contributes nothing, but now wants to claim child, because he lives there with the grandmother (his Mom) and his child. Grandmom doesn't like it because it will cause her child credit and EIC, and HOH to go away. 1st Question
can grandmom keep all these credits plus claim the grandchild,and because Father makes more AGI can he claim HOH without claiming child. I'm Confused. All responses appreciated. | |
| 15 February 2006 | |
| This is where I think it is the most confusing. This is what I understand but there are others here much more knowledgeable than me.
First off start with the Qualifying Child. The child is a Qualifying child of both the Grandmother and the Father. So if they agree then the person that claims the Qualifying child claims all of the credits. The other claims none. If they do not agree then the higher income person gets the Qualifying Child. In this case the Father. Head of Household - you have to have provided more than 1/2 the upkeep of the home for a qualifying child or relative. Based on this then if the Father takes the Qualifying child then he can not claim Head of Household but can claim all the other credits / deductions. The Grandmother can claim none. If the Grandmother claims the Qualifying child then she can claim the Head of Household and all the other credits / deductions and the Father gets none... Now let’s see what the real experts say... Dusty | |
Budrok@Aol.com (talk|edits) said: | 15 February 2006 |
| Thanks Dusty Appreciate The come back. | |
| 15 February 2006 | |
| To be brief, the grandmother would win for HOH, hands down. For EIC, and the child tax credit, it's a toss-up, but I would tell the gramdma to take everything. Based on the incomes, the grandma would benefit the most, anyway. Maybe they can work it out...... | |
| 15 February 2006 | |
| I believe the answer lies in whether the Dad is still a parent under state law definition. If the Dad had all of his parental rights removed by the state, then he may not even be a parent.
However, assuming that Dad still has all of his parental rights, he gets the QC under the tie-breaker rules. If he gets the QC, then Grandmother loses EIC, HOH, CTC, and dependency exemption. | |
| 15 February 2006 | |
| Wow! I guess (other than questioning if the dad lost his parental rights) I got that one right! | |
NOTICE to readers:
This discussion has been locked, as the long user name of the original poster will negatively affect the formatting of the tax forum columns on the front page, if any new reply is added. If you have a follow-up question or comment, please start a new discussion instead. Attempting to post using the "reply" box below will result in a generic error message. Thank you.
