If both parents who were never married want to claim the earned income credit (EIC) as an eligible individual with a qualifying child, the determination of which parent is entitled to claim the credit follows specific rules and tie-breaker provisions.
- Mutual Agreement: If both parents agree, either parent can claim the qualifying child for the EIC, provided the other parent does not claim the child for the same credit or any other tax benefits. This is illustrated in the examples where one parent agrees to let the other claim the child as a qualifying child.
- Tie-Breaker Rules: If both parents claim the same qualifying child and do not file a joint return, the IRS will apply tie-breaker rules:
- Residency Test: The child is treated as the qualifying child of the parent with whom the child lived for the longer period during the tax year.
- Adjusted Gross Income (AGI): If the child lived with each parent for an equal amount of time, the child is treated as the qualifying child of the parent with the higher AGI for the tax year.
- Examples:
- Example 1: If Parent A and Parent B both claim the child and the child lived with Parent A for a longer period, Parent A is entitled to claim the EIC.
- Example 2: If the child lived with both parents for an equal amount of time, the parent with the higher AGI is entitled to claim the EIC.
- Publication Guidance: According to IRS publications, if both parents claim the same child, the parent with the higher AGI will be allowed to claim the child as a qualifying child for the EIC. The other parent may still be able to claim the EIC without a qualifying child if they meet the other requirements.
In summary, if both unmarried parents want to claim the EIC with a qualifying child, the parent with whom the child lived for the longer period during the tax year is entitled to claim the credit. If the child lived with both parents equally, the parent with the higher AGI is entitled to claim the credit.
Sources:
Publication 501 (2023)
Publication 1380
Publication 17 (2023)
Publication 596 (2023)
§ 32. Earned income
