Disabeled Dependent

[whkrueg]

I have a client who is thinking about claiming his disabled brother (25yrs old), according to him he lives with him and does provide more than half of his support. The brothers only income is SSI and he get Pell Grants for school.

However, he has heard that if he claims him then that will effect the amount of SSI his brother gets and possible disqualify him for any more Pell Grants.

I have never come across this before. Does anyone know?

Thanks
BR/Wayne

[taxea]

run it by SSA and Pell Grant people. taxea

[whkrueg]

Disabled Dependent

Thanks taxea.

I had already asked my client to do that, he hasn't gotten back to me yet. So I thought I'd run it by the Message Board to see if anyone has come across a similiar situation.

Thanks Again
Wayne

[taxea]

Some things you just gotta do yourself. I usually have the client do the research but this sounded like something that I might want to get from the horses' mouth myself so that nothing got lost in the translation so to speak.

Sounds like the dependent is employable and going to school for a career path. As a dependent it is your client, obviously, that will have his/her returns looked at by Pell.

Is this the dependent's first year with Pell Grants? What was done in the past in order to get them? taxea

[whkrueg]

Disabled Dependent

Your probably right about having to check with at least Social Security on this myself.

My client is brother not his disabled brother. The disabled brother does not files taxes because his only source of income is SSI. I didn't ask what kind of disability the brother had, but since he is able to attend college he is mobile and aware of what is going on around him. I also didn't ask how much he get from SSI each month.

Apparently the disable brother has gotten Pell Grants in the past.

This was the first year the brother wants to claim him. My client only has 1099-misc income with not a lot of business or other deductions so he is looking for a way to reduce his taxable income.

Wayne

[taxea]

Obviously, if brother lives with him and he provides more than 1/2 of his support he can claim him but I'm sure Pell would want to see the clients return in the future. taxea

[whkrueg]

Disabled Dependent

Taxea

Thanks for your input...

There was never a question on weather or not he could claim his brother as a dependent. Your right, obviously he could. The question is, if he does, what are the ramifications, if any, to his bothers SSI payments and his ability to get a Pell Grant.

As I said, I am waiting for the client to get back to me. If I don't hear from him by next week I'll try to follow-up myself.

[S T]

Some Info

Here is a link to Pell Grant info http://www.disabilitybenefits101.org.../pell/faqs.htm

http://www.ehow.com/how_2099217_qualify-federal-pell-grant.html

and here is

SSI link http://www.socialsecurity.gov/pubs/11000.html

SSI is a different program than regular Social Security Disability or Retirement, I am not certain, but I believe if your taxpayer claims the person receiving SSI, that could jeoparize the SSI benefit. You might have to research some more, but somewhere at sometime I had read that if a SSI recepient received additional support from another source (altho Pell Grants seem to be excluded), then SSI would consider it as income for SSI purposes and that could affect the amount of the recepient's monthly benefit payment.

Good Luck,

Sandy