Exemption for parent

[Unregistered]

Regarding the gross income test, the IRS publication states that "tax exempt" social security benefits are not considered in the calculation of gross income. Does this mean that regular social security benefits received are not to be considered gross income for this purpose if no portion is subject to tax? A non-IRS publication says, "non-taxable social security benefits" are not considered in the gross income test.

My client, the parent, is not required to file a tax return since their only income is a $9,000 social security benefit. Her child wants to claim her as his dependent.

[taxmandan]

Dependent and gross income

That's correct, the real question is whether the Support test was met, did the child provide more than half the support for the parent?

[Gretel]

Gross Income

Your are correct on gross income. SS, non taxable, doesn't count.

But SS counts for the support test. Your client will need to contribute over $9,000 to claim parent, assuming all the SS is spent on parent. If parents puts most of it in savings account then it is different. Funds spent count not funds received.