Dependent

[S T]

We might see more of this due to the economy

I have a t/p that is asking whether or not they can claim dependency exemption for their "adult" child that is not working. Unemployed - NO Income - Adult Child is NOT part of the household.

So if I look at Qualifying Relative, relationship - son/daughter, etc, gross income - less than exemption amount or $ 3,650 for 2009, and taxpayer is paying more than half of the support for the "dependent" (t/p writing checks for rent, food and medical- Adult child paying no expenses and is not qualified to collect unemployment or SSA, etc. - -0- Income)

Is this correct? or am I missing something?

Sandy

[Black Bart]

Correct.

Is this correct? or am I missing something?

Sandy

Qualifying relative -- you are right.

That's the good thing about this split-up chart on dependents. The QR lets us get 'em even if they don't live with us, whereas in the old days it was all like Qualifying Child, that is, they had to live with us over six months.

Of course the support burden is higher for QR than QC, but usually the parents are paying the lion's share of everything in both cases anyway.

[S T]

Confirmation

Thanks BB for the confirmation!
I do so few of these dependent issues - that I always question my end result decision.

Sandy

[Gretel]

Same here. Since they started to mess around with this I feel I don't know anything about this subject and have to go and look it up unless it is a simple situation, like married couple on good terms with children and everyone just lives together.

[S T]

Glad its not just me

Gretel,

Thank you, I am so glad I am not alone in analyzing these situations

CFS has a good What If scenario, which I rely on - then TTB in Chapter 3, then IRS, etc. but seems like every situation is different.

I can remember the days when it was a lot easier to determine dependency exemption

Sandy

[geekgirldany]

I agree the dependent rules are not easy to remember. I open up TTB and run through the chart while they are here. Try to determine it then if I can. But I have found my self saying " I'll need to research that a little more... I'll know when I start the return ". I can't give a straight answer off the top of my head now. If I tell them they can... then they can't.... then I know what is coming.

[ChEAr$]

Just today I learn from my client, mother of former client, that although he owns the trailer
in which he lives alone (the trailer is on her land), he has had no income last year and she has bought his food, medicine, doctors bills, etc etc,

As far as qualifying child, he fails the "resides in household" for more than six months.

So maybe I can try for the qualifying relative instead?

[oceanlovin'ea]

Yes, it is true that your child (adult) does not have to live with you for you to claim them as a dependent if you pay the majority of their support. I am so thankful that the rules changed. My oldest daughter was bi-polar and has not worked in about 7 years. For a few years she lived on a friend's property in a travel trailer I bought. I paid her auto insurance and cell phone. Then we moved the trailer to Lakeland and I paid all her bills for about 4 years. She tried to work but never only kept one job for about 2 months. We were able to claim for a few years. This will be the last year though, because she died last February. But I get one more time.
That is one of the only breaks we ever get with our troubled children. Use it when you can.

Linda

[ChEAr$]

Dependency tests for 2009

I refer to TTB, page 3-15 and the two columns, one for qualifying child and the other for
qualifying relative.

My client as I described above has an adult son who is disabled and lives along in his own
trailer parked on client's land. Son is about 48 if I remember right.

The TTB chart starts off by saying "All seven of the following tests must be met...... etc."
It seems, then, that this adult son of my client, since he lives in his own trailer, fails the test # 5, "member of household test".

The only element of support adult son provides is use of his paid for, old, 1995 trailer. Mother, my client, pays everything else. But.... member of household test? Wouldn't that preclude taking the exemption?

[BP.]

Harlan- Can he be a QR?

[ChEAr$]

Harlan- Can he be a QR?

Okay, now I have looked at TTB page 3-15 in greater detail and see just how the seven
tests are presented. That was a little confusing before.

So yes, he IS a qualifying relative. And that's good.

Thank y'all so much.

[Lion]

Linda

Linda, I'm sorry.

[erchess]

Condolences

Linda I'm sorry for your loss.

[Black Bart]

Dear Linda,

Yes, it is true that your child (adult) does not have to live with you for you to claim them as a dependent if you pay the majority of their support. I am so thankful that the rules changed. My oldest daughter was bi-polar and has not worked in about 7 years. For a few years she lived on a friend's property in a travel trailer I bought. I paid her auto insurance and cell phone. Then we moved the trailer to Lakeland and I paid all her bills for about 4 years. She tried to work but never only kept one job for about 2 months. We were able to claim for a few years. This will be the last year though, because she died last February. But I get one more time.
That is one of the only breaks we ever get with our troubled children. Use it when you can.

Linda

Please accept my sincere condolences on the loss of your child -- surely one of the saddest things in life -- and I'm sure all of your many friends here feel the same (you are one of the nicest posters we have and while very few of us really "know" each other, I've come to regard my fellow veteran board members as "family"). It's obvious that you had to fight and struggle to cope with a very long and difficult situation and I hope it's comforting to know you did the best you could given the circumstances. Good luck and best wishes to you.

P.S. It is a good tax break, isn't it? I remember your original post a few years ago when you discovered this break for the trailer situation (I was in on that thread). At the time I was also under the impression that the old rules still applied and children had to live with you, but our former colleague jainen (remember him?) had happily enlightened us on the QR subject.

[BHoffman]

Linda, very sorry to learn of your loss.

I have always found a lot of comfort in this pretty song:

http://www.youtube.com/watch?v=mFcxBOpiI0g

"Falling in the Garden" by Ray Lynch