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EITC 2022: What if two people claim the same dependent?

IRS issues explanation of rules.
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EITC

Earned Income Tax Credits (EITC) are a continued part of the United States of America‘s plan to help families rebuild their finances after the COVID-19 pandemic. The EITC helps low-to-moderate income workers and families get a tax break.

If you and your family qualify then you can use the credit to reduce the taxes you owe to the IRS, or perhaps maybe even increase the refund they owe you, depending on the situation in question.

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President Joe Biden has looked to assist families with his American Recovery Act, although a lot of those measures are now running close to expiry, with the economy appearing to be hitting full-steam once again after COVID-19.

However, there are a number of issues with the EITC and people have a lot of questions over whether they are eligible or what can happen if two people claim the same dependent, which is usually a child.

EITC: How should parents claim for the same child?

Only a taxpayer who pays more than half of the household expenses may qualify for Head of Household filing status, and. If parents split their expenses equally, then neither can claim to be Head of Household and file for the tax credits of the children.

If a child is a qualifying child of both parents, generally only one parent can claim the child as a qualifying child for all of the child-related tax benefits included in the EITC program.