| You can claim earned income credit (EIC) for one or | | | | condition and a doctor has determined that such |
| more qualifying children. There are three different | | | | condition has lasted or expected to last continuously |
| tests to find out whether your child qualifies. If your | | | | for at least a year. |
| child meets these three, then you can look forward | | | | The test of residency |
| to this credit just by filing your tax return. | | | | Your child must be living with you in the United |
| The preliminary requirements: | | | | States for at least half of the calendar year. |
| In order to qualify, your child should meet three tests | | | | Remember, the members of the armed forces of |
| – relationship, age and residential status. | | | | United States staying out of the country on |
| The test of relationship | | | | extended active duty are considered to be living in |
| The child for whom you are claiming EIC must be | | | | the U.S. If a child is away from home due to illness, |
| your son, daughter, step-child, foster-child, or your | | | | school attendance, military service, then he or she is |
| grandchild. Alternatively, the child must be your | | | | presumed to have passed the test of residency. |
| brother, half brother, step-brother or sister, half | | | | The child must have a valid social security number |
| sister, step-sister, or a descendant of any of them, | | | | and it must be correctly entered on your tax return |
| like your niece or nephew. | | | | in order to qualify. So if you have two children |
| An adopted child is also treated as your own child. | | | | qualifying for EIC and only one has a valid social |
| If a child is placed with you by an authorized | | | | security number, then you can claim EIC only for the |
| placement agency, and then the child is your Foster | | | | child with valid social security number. |
| child, who also passes the relationship test. | | | | The qualifying child can’t be used by two |
| The test of age | | | | persons at a time to claim the EIC. When more |
| If your child is under 19 years of age, or under 24 | | | | than one person files a return claiming EIC for the |
| years of age and a student or a disabled child, | | | | same child then a tie-breaker rule is applied. So if |
| regardless of age, he or she passes the test of | | | | you and your three year old daughter lived with your |
| age. Suppose your son turned 19 on December | | | | mother all over the year. You are 27 years old. |
| 25. Unless he is a student and or a disabled person, | | | | Your only income was $10,000 from a part time job |
| he cannot qualify as a child for EIC. | | | | while the only income of your mother was $20,000 |
| To qualify as a student, your child must be a full-time | | | | from a job. So your daughter meets all the tests |
| student during some part of each of any calendar | | | | for both you and your mother. However only one |
| months during the calendar year. The calendar | | | | of you can treat her as a qualifying child to claim EIC. |
| months need not be consecutive. | | | | And the final and important rule –if you want to |
| Your child can be presumed as permanently and | | | | claim EIC for your qualifying child, you cannot be a |
| totally disabled if he or she is unable to engage in any | | | | qualifying child of another person! |
| gainful activity because of his/her physical or mental | | | | |