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EARNED INCOME CREDIT

Q. I have a child who is now 20 years old. she went to a votech school for 6 months last year. Can I claim her on the earned income credit deduction even though I will not claim her as a dependent?

>>>>>IR$Maven's Reply:

The child does not have to be your dependent for tax purposes. However, the child must "share the same domestic principal place of abode" with you for more than one-half of the tax year.



Q.
Though most of 1999, I received welfare from an accident at work. Am I eligible to receive earned income credit? I am married and have two children. Also, I started work a few months ago, and made roughly $2,000 for 1999.

>>>>IR$Maven's reply:

The non-taxable Welfare benefits that you received are NOT considered "earned income" for purposes of computing the earned income credit. However, the $2,000 of wages can be included. To compute the EIC, you have to include the earnings of your spouse, assuming you are filing a joint return. Then, the EIC is limited by Total Income and Adjusted Gross Income, plus other limitations. Contact the IRS at 800-829-3676 or on the internet at www.IRS.GOV and request the booklet on Earned Income Credit.

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