Question

Herman, who is not a dependent, states he wishes to claim EITC this year for his 35-year-old dependent child. Both reside in the U.S. Herman states that the child lives with him, is not married, is disabled, and has not worked during the year. What should Herman's Tax Professional do to determine if the child can qualify Herman for EITC? Enter Herman's child on his return and identify him as a disabled qualifying child. Advise the client of the tax definition of disabled, and apply sound judgment and common sense to see if the definition is met. Ask for proof of the child's income. Explain to Herman that a 35-year-old child is too old to be a qualifying child for EITC

Answer 1

Answer:

Herman's tax professional should "Advise the client of the tax definition of disabled, and apply sound judgment and common sense to see if the definition is met."

Explanation:

Earned Income Tax Credit (EITC) is a refundable tax credit that can be earned by low and middle income workers, especially those who have children.

According to EITC guidelines, a parent can claim EITC on behalf of a disabled child and there is no age limit for such a child to quality for EITC. However;

• The child must be totally and permanently disabled such that he cannot work or engage in any activity to earn income.

• A doctor's report has to be provided to confirm that the child is permanently disabled.

Herman's tax professional must therefore carefully explain these requirements to Herman, and also apply sound judgement and common sense to see if Herman's child meets the requirements.