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Difference between an exemption and EIC?

I had asked a question about redoing taxes and not claiming someone as an EIC anymore and I got this answer:

Yes, you'll have to file an amendment to her return, dropping the exemption for your sister. You use a form 1040X for that.

Your mom gets the EIC for her though since your sis lives with mom - the divorce agreement can dictate who gets the exemption, but not EIC.

Your mom might have to send back part of her refund, if she saved in taxes by claiming your sister's exemption. She won't have to send back the EIC part though.


Im not sure what the difference is between an Exemption and the EIC I only see that area for an EIC on a 1040.

There's a section that says "dependents" on the return toward the beginning. Then in the "tax credits and payments" section there's something called exemptions - it's line 42 on a 1040, or line 26 on a 1040A. That's the two places that would change. If she got a child tax credit for her (line 52 on the 1040, 32 on the 1040A) that would also change. On the EIC "qualifying child" form, you'd still list your sister on your mom's return.

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