Question

Jim, age 55, has a 40 year old sister Alison who lived with her all year. Alison is totally and permanently disabled. Alison received $8,450 in social security benefits that paid for more than half of his support. Jim earned $35,700 from her job and had no other income. No other relatives lived with Jim. Can Jim claim her brother as a qualifying child for EIC?

a)    Yes

b)    No

Answer 1

The qualifying child has to meet four conditions :

1. Peraon has to be individual child, step child, froster child or a sibling

2. Residence : they must have same place of residence

3. Age : the person must be less than 19yrs but this doesnot apply to person who is permanently disabled

4. Support : didnot provide more than one half of support in last year.

Since all the four the conditions are satisfied he will be elgible for EIC i.e. earned income tax credit.

Answer A