Question

several tax payers want to claim eic for the same 3 year old child. they all lived in the same household with the child for the entire year and all had earned income. one is the child's father. one is the child's aunt who provided over half of the child's support, and one is the child's grandmother who is the member of the household who had the highest ago. which taxpayers is able to claim EIC?

Answer 1

Child should not provide more than half his support, hence aunt providing more than half his support means child not provided more than half his support and support test is passed by all 3.

when multiple persons meet the eligiblity criteria, tie breaker rules are given by irs to decide who can claim the credits and related benefits.

first is if out of all persons if anyone is parent, parent should claim the credits and related benefits.

accordingly, child's father is entitled to EIC.

If he do not opt for this, the person with highest AGI than parent can claim the credit, which is child's grandmother.