Bob, who is not a dependent and is self-employed, states he wishes to claim the Earned Income Credit this year for his 29-year-old dependent child. Bob tells you he earned $35,900 from his business but has no records to substantiate income or expenses. Both Bob and his child reside in the U.S. Bob tells you that the child lives with him, is not married, is disabled, and has never had a job.

What do you need to do to determine if the child can qualify Bob for EIC?

They cannot claim EIC.

The tax preparer cannot prepare the return.

They can make a Form 1099-MISC to document their own income.

The tax preparer must assist the client in preparing a reconstruction of income and expenses and keep a copy of the reconstruction in the client file.

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