Child Earned Income Credit Tests
Below are the child earned income credit tests. To qualify for an earned income credit with a qualifying child or children, the child must pass tests for qualifying child for earned income credit.
1) Relationship Test for child earned income credit
The child for the earned income child credit must be:
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your son, daughter, stepchild, eligible foster child
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descendant of any of them
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your brother, sister, half brother, half sister, stepbrother, stepsister
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descendant of any of them such as niece or nephew
Adopted child and earned income tax credit
An adopted child is also a qualifying child because an adopted child is always treated as your own child. The term adopted child includes a child who was lawfully placed with you for legal adoption, even if the adoption is not final. A grandchild is any descendant of your son, daughter, stepchild or adopted child and also includes great grandchildren.
Does the child has to be my dependent?
Your child does not have to be your dependent unless the child is married. A married child is a qualifying child if you can claim hat child's exemption or the reason you cannot claim the child's exemption is that you gave that right to your child's other parent.
Foster child and earned income tax credit
An eligible foster child meets the relationship test if the child is placed with you by an authorized placement agency. for the earned income credit, a person is your eligible foster child if the child is placed with you by an authorized placement agency or by judgement, decree or other order of any court of competent jurisdiction.
An authorized placement agency includes a state or local government agency. It also includes a tax exempt organization licensed by a state. In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children.
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