Sophie would like to claim her granddaughter, Serenity, as her qualifying child so she can claim the Earned Income Credit (EIC). However, Serenity's mother, Sadie, is also eligible to claim Serenity as her qualifying child for EIC purposes and would like to do so if she is able.

As Sophie's tax preparer, what information would you share with Sophie?

As long as Sophie files before Sadie, she may claim EIC based on Serenity, her qualifying child. Sophie and Sadie may agree to each claim one-half of the EIC based on Serenity, their qualifying child.

Sophie may claim EIC based on Serenity if her adjusted gross income was higher than Sadie's.

Sadie holds a higher right and may claim EIC based on Serenity because Sadie is Serenity's parent