10.3.4 Multiple EIC Claimants

Sometimes, a child is the “qualifying child” of more than one person. However, only one taxpayer (or a married couple filing jointly) can claim the EIC for the child.

If the EIC is claimed by two individuals who are each eligible to claim the child, a series of tiebreaker rules apply:

1. A parent wins over a non-parent.1
2. Where parents lived apart for some portion of the year, but each lived with child for at least 6 months, the parent who lived with child longer wins.
3. Where the child lived with each parent same amount of time, the parent with the higher AGI wins.
4. If neither parent is an eligible claimant, caretaker with highest AGI wins.

The law presents some planning opportunities for unwed parents who live together, but cannot file as “married.” If both unwed parents are the biological parents of a child, they can decide who claims the child for the EIC. If they have more than 1 child together, they can split their children. If both claim a child, the first tie breaker favors the parent who lived longer with the child. If residency is equal, the parent with the higher AGI wins.

When evaluating cases involving the EIC, take care to check if the claimed dependent was claimed by another household for public benefits, such as housing subsidies, food stamps, or Medicaid. This will be an obstacle to proving residency. If another claimant wrongly claimed the dependent as living in their household, that claimant may be examined if your client prevails on their EIC claim and may have to repay the benefits that were received. This should be explained to the client, especially if the other claimant is a family member.

• 1A parent should win over a step-parent.