Tax filing question...

[Tyche]

My sister has no income. She did not work at all in 2009. She received child support and food stamps. I think she's on section 8 now, but I don't think she was in 2009. I'm not certain. She has a kid. Can she still file taxes and claim the child as a dependent and file for EIC? If you need more info, please post, and I'll try my best to answer it.

[Pikarya]

99.9% sure she cannot.

And just to add;

Child support is not a tax-deductible expense, and is not considered taxable income for the recipient.

[Tyche]

I knew it wasn't taxable, but it DOES still have to be reported.

[Cephius]

Yes she can claim the child as a dependent (why couldn't she?) but she can't file for EIC because you need to have been employed and have proof of income. If she didn't work at all like you said, she's not eligible.

[Pikarya]

I knew it wasn't taxable, but it DOES still have to be reported.

Well, the parent receiving the payment does not have to claim it as income.

You should only claim the payments you have received that exceed the required child support payments as taxable income.

As for my "99.9% can't" response, that was in reference to the earned income credit part. Sorry I didn't clarify that.

[Kyumo]

I currently work for a tax software company and we have tax analysts here and what they tell me is she is not eligible for EIC because one of the requirements to claim EIC is to have earned income, which may include:

Wages, salaries, tips

Net income from self employment

Disability pensions

Combat pay

Certain clergy income

And child support does not count as earned income. Hope that helps.

[tyven]

LOLKENTUCKY