Mentally Challenged Daughter -Take Exemption?

[zeros]

Client has mentally challenged daughter (40) who earns W-2 wages of $3400.00. She also receives SS of $11K. Lives with Mom. Does the $11K count against the $3650. allowed in order to claim HOH and exemption for my client?

[Gretel]

Question: Is daughter legally disabled?

If yes, SS doesn't count towards income test, but counts as support provided by dependent. Next test then is 50 % support test.

[ChEAr$]

Question: Is daughter legally disabled?

If yes, SS doesn't count towards income test, but counts as support provided by dependent. Next test then is 50 % support test.

However, there is an exception for a "mentally challenged" (to be politically correct about it) individual employed in a certain type of facility, something or other workshop.

[Gretel]

Harlan, are you saying the exception is for the support test also? I think it is for gross income only.

[ChEAr$]

Harlan, are you saying the exception is for the support test also? I think it is for gross income only.

You're right on that.

[taxea]

and one must not forget that if none of the monies are actually used for her support they can still take her as their dependent.

[Lion]

Disabled

The child can be any age and permanently and totally disabled to qualify as a Qualifying Child. If this child is permanently disabled, then the only support test is that the child cannot have provided over half of her own support, nothing to do with $3,650. Did the parents have such low income that this is an issue in this case?

If so, then step through the support worksheet to see how it comes out. If it's close, don't make assumptions but ask questions re what funds were spent on what and what were banked or saved for her eventual care when the parents are gone and what savings, credit, borrowing, or other monies not present on the tax return so maybe unknown to you were drawn upon by the parents to support their household and daughter.