Earned Income Credit
Response to the following problem:
For each of the following situations, determine under the tie-break rules the person entitled to claim the qualifying child for purpose of the earned income credit.
a. Kate (age 30) and her son, Jimmy (age 3), live with Kate's father, Fred, the entire year. Jimmy is a qualifying child to both Kate and Fred. Kate's AGI is $20,000; Fred's is $64,000.
b. Ned and Tammy are divorced. They share custody of their twin sons, age 13. The boys live with Ned half of the year and with Tammy the other half of the year. Tammy lives with her parents. The twins are qualifying children to Ned, Tammy, and Tammy's parents. Ned's AGI is $45,000, Tammy's AGI is $20,200, and the parents AGI is $36,900.
c. Same as in Part b., except that the boys spend more days with Tammy during the year
d. Same as in Part b., except that the boys spend more days with Ned during the year.
e. Darcy's parents are both deceased. Darcy is 15 and is being raised by her aunt. Her grandparents also participate in her upbringing and support. Darcy is a qualifying child for both her aunt and her grandparents. The aunt's AGI is $21,500. The grandparents' AGI is $45,300.