Dependent

[S T]

Taxpayer which is Grandmother-unsolicited, received temporary guardianship and custody of her grandchild in March 09 through DCSS.

Daugher which is mother, of grandchild also came to live with Grandmother a few weeks later. Daugher receives $ 1,200 per month SSDI - daughter does not have a filing requirement.

Grandchild and daughter live iwth Grandmother until approximately 12/22/09, then move out to their own living quarters.

Question - can grandmother claim the grandchild as a dependent
can grandmother claim the daughter as dependent.



Thanks

Sandy

.

[JG EA]

Taxpayer which is Grandmother-unsolicited, received temporary guardianship and custody of her grandchild in March 09 through DCSS.

Daugher which is mother, of grandchild also came to live with Grandmother a few weeks later. Daugher receives $ 1,200 per month SSDI - daughter does not have a filing requirement.

Grandchild and daughter live iwth Grandmother until approximately 12/22/09, then move out to their own living quarters.

Question - can grandmother claim the grandchild as a dependent
can grandmother claim the daughter as dependent.



Thanks

Sandy

.

Since I am the only one up.

If passes 1-3 then for QC

Granddaughter::
4) Relationship test. Passes
5) Member of household test. Passes
6) Age test. Passes
7) Support test. Passes

Daughter:
4) Relationship test. Passes
5) Member of household test. Passes
6) Age test. If she doesn't pass this go to QR.
7) Support test. Probably not unless she banked her money. Same with QR

No issues with daughter claiming her daughter because no earned income or any taxable income for that matter.

[Zip2001]

Looks like Mom paid more than 1/2 of her own support so she's not a QC or QR of the Grandmother.
Mom ties with grandma for claiming the grandchild.
The daughter should not claim the grandchild so grandma can. (Claiming doesn't help Mom because of no earned income)
Grandma can claim HoH, dependent exemption, CTC, EIC (depending on AGI), and Dependent Care Credit.

[David1980]

Looks like Mom paid more than 1/2 of her own support so she's not a QC or QR of the Grandmother.

If it was social security the mom received that would be true. SSDI is easy to confuse with SS.

[S T]

Daughter

Receives "SSDI" was awarded the benefit in 2009 due to being bi-polar

Sandy

[erchess]

Good Point

SSDI is not considered for the support test. But how do you tell when the person is receiving SSDI and when they are receiving regular Social Security or SSI? Are they not all reported on the same form?

[dyne]

Erchess:
Do you have any authority or reference that SSDI is NOT considered as being used for
support? I never heard of that. Best wishes.

[WhiteOleander]

If daughter receives SSDI, could she be considered totally and permanently disabled? Therefore turning her into a QC?

[Zip2001]

If daughter receives SSDI, could she be considered totally and permanently disabled? Therefore turning her into a QC?

Disabled allows daughter to pass the age test, but doesn't help with the support test. If the daughter paid more than 1/2 of her own support she can't be anyone's QC.

[BP.]

Are they not all reported on the same form?

No. No reporting (i.e. a 1099) for SSDI. Agree w/David1980- easily confused. Agree w/dyne- why would it be categorically excluded from support test?

[Zip2001]

If it was social security the mom received that would be true. SSDI is easy to confuse with SS.

It's not a question of taxable SS or nontaxable SSDI income. It's a question of who paid daughters support. Did the daughter pay more than 1/2 of her own support?

Funds could come from many places - savings, pouch of gold coins under the mattress, SSDI, insurance proceeds, gifts, etc. How those sources are taxed is irrelevant to the support question.

[erchess]

Ya'll caught me

I thought I had read that in TTB last year but I can't find it and I found in both this year's and last year's books the pages where I thought I remembered seeing it.

Just so we are clear are we saying that all monies from the SSA count as income for purposes of the gross income dependency tests? This blows my mind but luckily I don't think I have ever done a return where this question was relevant.

[David1980]

Disabled allows daughter to pass the age test, but doesn't help with the support test. If the daughter paid more than 1/2 of her own support she can't be anyone's QC.

But wouldn't SSDI be considered support provided by the state, not support provided by the daughter?

[BP.]

I thought I had read that in TTB last year but I can't find it and I found in both this year's and last year's books the pages where I thought I remembered seeing it.

Just so we are clear are we saying that all monies from the SSA count as income for purposes of the gross income dependency tests? This blows my mind but luckily I don't think I have ever done a return where this question was relevant.

Are you thinking of this- TTB 3-18 under "Gross income- "Gross income does not include nontaxable Social Security?" And maybe thinking "gross income test" & income counted towards the "support test" are the same, which they aren't?

[dyne]

Thank you Erchess and others. I thought I had missed something.
We agree that SSDI would normally be considered as being used toward support
received from the government but is NOT Gross Income as far as the
rules regarding a dependent is concerned. Best wishes to all!