Disabled dependent

[Possi]

My client is moving her disabled sister from CA to VA so she can help take care of her.

Sister will live with them for a few months, then move to a rental. Client will provide over half of sister's support, as sister only gets about $900/mo SSecurity. (My client is pretty well off and will subsidise her rent, food, medical, transportation, etc., and knows she will have to document those expenses.)

I believe that the only dependent who doesn't have to live WITH you to claim the exemption is your parent, but can't find it. TTB 3-18 defines a disabled person, but does that person have to live with the taxpayer?

[spencer]

Aside

from the disability....Would Qual Relative work? (TTB 3-15)

[spencer]

I guess

in this case, does gross income include social security?

[BP.]

I believe that the only dependent who doesn't have to live WITH you to claim the exemption is your parent, but can't find it.

pub 17, p. 33- "Relatives who do not have to live with you." Sister is on the list.

[spencer]

pub 17 p 33

"Tax-exempt income, such as certain SS benefits is not included in gross income."

[Possi]

pub 17, p. 33- "Relatives who do not have to live with you." Sister is on the list.

Thanks!! I'll document that, too!

[Possi]

"Tax-exempt income, such as certain SS benefits is not included in gross income."

I got it...

I know it has to be included in the support test, though.

Thanks so much~

[DonPriebe]

... I believe that the only dependent who doesn't have to live WITH you to claim the exemption is your parent, but can't find it. ...

That's the rule for claiming Head of Household with a dependent who doesn't live with you. Plain dependency (as in Qualified Relative) requires either member of household or certain relatives on the list.. Sisters are on the list.

[Possi]

Ohhhhh

THAT'S RIGHT!

That's where my thought process was............