Dependent Question

[S T]

I have a taxpayer that is inquiring as to whether or not she can claim her "father" as a dependent.

Preliminary info is

He is married and has a spouse (Father and Mother) Both have been receiving SSI - Father was denied benefits for SSI in April 2009 - as he went abroad to Taiwan for an extended visit. So now he will have to reapply. Mother still receiving her benefits.

The parents do not file a Tax Return. Taxpayer is contributing greater than 50% to their support.

Question, can the taxpayer claim the Father and not the mother as a dependent?

TTB - pg 3-15 states that

Married filing jointly test. A person cannot be treated as a dependent if he or she files a joint return with a spouse. This rule does not apply if the joint
return was filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns.

Taxpayer meets all of the other Qualifying Relative tests.

I am sure I am omitting an important component at arriving at this answer, but not sure

Another concern, trying to think ahead, is if the t/p claims the Father as a dependent, I think that could possibly jeopardize his SSI benefits for the future. They are planning to re-apply for benefits for 2010.

Thanks

Sandy

[erchess]

MFJ Test

The parents do not file a tax return so this test is met.

My quibble would be why is she only wanting to claim her Father? If as is normally the case a married couple lives together and commingles their finances it looks to me as though the Support test would pass both or pass neither. Of course there are other tests and it could be that the Mom fails one or more that you have not discussed.

[spanel]

I'd would also think both or neither.


Chris

[dsi]

And why would his SS be cut off simply because he traveled for an extended period of time?

[spanel]

Is not SSI suplimental income (disability). He was on an extended trip overseas, but both have very little income?? Somethings not making sense here...


Chris

[Lion]

Ssa

As well as the tax aspects, you have some concerns that should be addressed by the Social Security Administration. Get a POA or have a conference call with Mom or Dad on the line with SSA.

[erchess]

SSI and Poverty

I don't think you have to be poor to draw SSI. You just have to be unable to do pretty much any work and you can't have coverage from private disability insurance which normally pays more and has a less restrictive definition of disabled.

On the other hand most people who are eligible to draw SSI are indeed in poverty even if they were not in poverty before they became disabled.

[S T]

Ssi

SSI is not like Social Security Benefits. SSI is not based on prior work or family member's prior work history. SSI is financed by general funds of the US Treasury, NOT part of the Social Security system.

Well you pretty much have to have no assets and no income to qualify for SSI - Is limited to "disabled", blind or at least 65 years old (some children or young adults will qualify) and have "limited" income and resources. In addition, must be a resident of the US and NOT be absent from the country for more than 30 days AND be either a US citizen, national, or in one of certain categories of eligible non-citizens.

Income for SSI includes earned income from wages, SE, royalties, etc, and Unearned income, from Regular SSA benefits, pensions, state disability payments, interest AND "cash from friends and relatives. Also includes In-Kind Income for Food or shelter that is received free or less than FMV, and then deemed Income - which is the part of income of your spouse that you live with, parents you live with or a sponsor (if alien).

Examples of what is not counted as income under SSI is

the first $20 of most income received in the month
the first $65 earnings and one-hal of earnings over $65 received in a month
the value of food stamps
income tax refunds
and some of the list goes on.

Assets are "limited resources" which would include cash, bank accounts, land, vehicles, personal property, life insurance and any other item owned that could be converted to cash and used for food or shelter.

Individuals can only have $2,000 of assets and a Couple can only have $3,000