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Author: shortamzn One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: multiple support declaration Date: 2/28/2000 1:20 PM
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I'll take a shot at this but all input is welcome. If you mean the mother provides more than 50 percent of the total support for the sisters, then she can't allow the daughter to claim the sisters' exemptions through a multiple support agreement, because in order to use the multiple support agreement, no one can provide more than 50 percent of support.

To get the earned income credit the daughter would have to qualify under the relationship test. The child (meaning sisters in this case) does not have to be the daughter's dependent to be a qualifying child, unless one are both are married. But the sisters must be the daughter's children (really getting weird now!). There is a fosterchild category that is broadly interpreted by the IRS as a child you have cared for as your own and who you have lived with the whole year. That may allow EIC for the daughter, without claiming the sisters as dependents.

In reality, you may want to explore, if the daughter did provide more than 50% support, and where the mother's and daughter's available funds actually do go-- is the house paid for, etc.

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