Once you’ve met the first seven rules to qualify for the Earned Income Tax Credit, there a few more you’ll have to be aware of and use to determine your eligibility. A large part of the EITC relates to whether or not you have a qualifying child.

There are four requirements that your child must meet I order to be considered a qualifying child for the EITC.

Relationship

The child must be related to you in one of the following ways:

• Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), or Brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew).
• A legally adopted child that is placed with you by the order of the court through a judgment or decree
• A foster child placed with you through an authorized state or local government agency, and done so through a legal judgment or decree.

Age

In order to qualify, your child must meet certain age tests as follows:

• Must be under age 19 at the end of the tax year
• Must be younger than you (and if you file jointly, your spouse)
• If a full-time student, the age test is increased to 24, but the other rules remain the same
• If permanently disabled, the age test does not apply

A full time student is one who is enrolled in a regular schedule of study for at least five calendar months of the year, at an institution with regular student enrollment and teaching faculty. Strictly online schools, on-the job training, and correspondence schools do not qualify for the EITC.

Permanent and total disability is defined as one in which the child cannot engage in self-care or other activity because of a physical or mental disorder, or having a condition which a doctor deems is terminal.

Residency

For the EITC, your child must have lived with you in your home in one of the fifty states or the District of Columbia for at least half of the year. U.S. possessions, territories, or Puerto Rico do not count toward the residency test for the EITC.

You do not need to have a traditional home to meet the residency test, as any location where you live regularly, including homeless shelters, will meet the test.

Military members stationed outside the U.S. on active duty are still considered to qualify for the EITC during the deployment. The same is true for extended active duty military personnel.

If your child passes away or you give birth to another child during the tax year, you will qualify for the EITC if your home was the child’s residence for at least half of the time he or she was alive during the year. If your child happens to be kidnapped, special rules apply. Talk to your financial adviser for more information.

Joint Return

If your child is married, he or she cannot file a joint return with their spouse, except in cases where the intent is only to claim a refund of overpayment. If the child files a joint return and claims any other credits or deductions, such as the American Opportunity Credit, then he or she does not qualify for the EITC as your child.

It’s important to note that a qualifying child must have a valid U.S. Social Security number in order to be eligible for the EITC.