Qualifying Relative?

[Kram BergGold]

From reading TTB page 3-15 it seems that someone's sister, who has no income, can be a qualifying relative even if she does not live with the taxpayer as long as taxpayer is providing more than 50% of support, correct?

[BHoffman]

It's my understanding that Qualifying Relatives who are related in one of these ways need not live with the taxpayer. As long as the TP meets the other four tests (gross income, support, citizenship, joint return), I think he/sher can claim these qualifying relatives as a dependent without any residency requirement:

son or daughter, grandson or granddaughter, great grandson or great granddaughter, stepson or stepdaughter, or adopted child,
brother or sister,
half-brother or half-sister,
step-brother or step-sister,
mother or father, grandparent, great-grandparent,
stepmother or stepfather,
nephew or niece,
aunt or uncle,
son-in-law, daughter-in-law, brother-in-law, sister-in-law, father-in-law, or mother-in-law, or
foster child who was placed in your custody by court order or by an authorized government agency.
TIPS



I think the following Qualifying Relationships do have a mandatory residency requirement:

The person is a member of TP's household, and
The person lives with TP for an entire year, and
The relationship between TP and the dependent does not violate local law
.

[Bees Knees]

Being a member of the household only applies to a qualifying relative who really isn't related.

[Roberts]

To be a qualifying relative it says they must have gross income of less than $3,500. Does that include unemployment benefits? Considering the way they determine gross income on 3-19, I'm guessing it would be included?

How about 401-k withdrawls that are taxed as income?

I'm trying to determine exactly if a client's son is allowed as a dependent.

[Kram BergGold]

Income

Basically everything taxable is income except Social Security.

[tpert]

Basically everything taxable is income except Social Security.

I am sure you meant "the nontaxable portion of Social Security" but at this income level, probably all of it would be.

There is an excellent list of what the IRS considers gross income to be in the middle of page 63 of the instructions at the bottom of the RRC worksheet. That credit is partially based on "Gross Income" and this was the first time I ever saw the IRS compile a list like that.

[taxea]

tpert....middle of page 63 of which instructions? taxea

[Kram BergGold]

My point about SS

I deliberately said gross income for the support test is everything taxable except SS because if SS is taxable you are way over the income limit and I wanted to make the point that tax exempt interest is not gross income for this test.

[tpert]

tpert....middle of page 63 of which instructions? taxea

Sorry.

The middle of page 63 of the 1040 instructions.

[tpert]

I deliberately said gross income for the support test is everything taxable except SS because if SS is taxable you are way over the income limit and I wanted to make the point that tax exempt interest is not gross income for this test.

I figured that was the point you were making.