If they made $20k, they probably provided over half their own support. Thus, they would not be a dependent, but would still be a qualifying child for EIC purposes only.
I put it to my students this way -- in a family consisting of mom & 2 kids, the child actor makes $200k a year & pays mom a $15,000 management fee. The 10-year-old kid can file head of household (because her 15-year old brother lived with her), and her mom can claim her for EIC ! In fact, that's the scenario my students get to warm up with this morning. I'll see how many brains I sprain. Bwahahaha!
I put it to my students this way -- in a family consisting of mom & 2 kids, the child actor makes $200k a year & pays mom a $15,000 management fee. The 10-year-old kid can file head of household (because her 15-year old brother lived with her), and her mom can claim her for EIC ! In fact, that's the scenario my students get to warm up with this morning. I'll see how many brains I sprain. Bwahahaha!