Qualifying Child
From Wikicpa
The Working Familiies Tax Relief Act of 2004 created the new concept of qualifying child. The new definition for a qualifying child is found in <IRC Sec. 152(c)>.
For 2005, a qualifying child is one that meets the following requirements three tests.
- Age Requirement test: The child must be either under age 19 as of December 31 of the tax year or under age 24 as of December 31 and a full-time student for a minimum of five month during the year. Exception: the age requirment is waived for any child who is permanently and totally disabled at any time during the year. (This means that a disabled child can potentially be qualify regardless of age).
- Relationship test: The child must be the taxpayers's son, daughter, stepson/stepdaughter, a legally adopten child, or and eligible foster child, a grandchild, or a brother and sister, half brother/sister, or a niece or nephew.
- Support and Residency test: The child must not provide over half of his or her own support for the year and must share the same residence with the taxpayer for over half the year.
Remark: A person cannot be anyone's qualifying child if during the year, he or she provides over half their own support.
Tie-breaking
What happens when a child is entitled to be claimed by more than one person. For exmple: a child that lives in the same home with both a parent and grandparent and the child meets the residency requirment for both the parent and grandparent.
Under the tie-breaking rules, the status of the child is entitled to the parent. If in the case of parents that file seperate return, the child is entitled to the parent where the child resided the longest during the year. If still equal, the Parent with the highest [adjusted gross income] is used to break the tie.
