Parent Claiming Adult Child as Dependent

[Uncle Sam]

A 29 year old child lives full time with parent, is not physically or mentally handicapped in any way, just is unemployed. Can the parent claim the child as a dependent?
Son did get a college degree - but after that just didn't get employed. Why I don't know.
This is a new client.

[KBTS]

He could be a dependent under the Qualifying Relative rules. Run though the tests on page 3-15 of TTB to see if they can claim him.

[Uncle Sam]

Parent Claiming Adult Child as Dependent

Okay -

Son is single and not a dependent of another taxpayer
He's a U. S. citizen
He's the son of the taxpayer
He's not a qualifying child due to over age 24, and not permanently and totally disabled.
He didn't provide over 50% of his own support.

I guess he does qualify as a Qualifying Relative.
This is the first time I've come across this type situation.

Why is there a distinction between Qualifying Child vs Qualifying Relative? What's the rationale? I don't get it. I can understand a total stranger (not violating any laws) who otherwise meets the tests being a QR under the definition - but a child?

[dtlee]

Okay -

Son is single and not a dependent of another taxpayer
He's a U. S. citizen
He's the son of the taxpayer
He's not a qualifying child due to over age 24, and not permanently and totally disabled.
He didn't provide over 50% of his own support.

I guess he does qualify as a Qualifying Relative.
This is the first time I've come across this type situation.

Why is there a distinction between Qualifying Child vs Qualifying Relative? What's the rationale? I don't get it. I can understand a total stranger (not violating any laws) who otherwise meets the tests being a QR under the definition - but a child?

Qualifying Relatives can be dependents and sometimes qualify you for Head of Household, but none of the other benefits. Qualifying Children can (under the right circumstances) qualify you for Earned Income Credit, Dependent Care Credit, and Child Tax Credit in addition to dependency and Head of Household.

Please note, that the rule for a Qualifying Relative is not whether he provided more than half of his own support, it is whether the taxpayer provided more than half.

[taxxcpa]

Age is not a factor

A child's age is not a factor in claiming an exemption. Some people claim their parents and grandparents.

One guy wanted to claim his son and the son made more money than the father and filed jointly with his wife, so I had to break the sad news to him that his son could not be claimed.

[Uncle Sam]

Parent/Child Dependency

Thanks DT - you gave me what I needed. That clarified it.

Qual Child - gives you the benefit of tax credits in addition to exemption and HOH status.

Qual Relative - gives you only the exemption and HOH filing status.

Of course that is if all other requirements are met.

Where would I be without this board?

[Gary2]

Qualifying Relatives can be dependents and sometimes qualify you for Head of Household, but none of the other benefits. Qualifying Children can (under the right circumstances) qualify you for Earned Income Credit, Dependent Care Credit, and Child Tax Credit in addition to dependency and Head of Household.

EIC and CTC are limited to qualifying children, but I don't think any other credits are.

The Dependent Care Credit, in particular, can not only be taken for a QR who qualifies, but can even be taken for a spouse or for someone who only fails the QR test because of too much income or filing a joint return. This can be important for people caring for their parents.

Even more obscure, you can take the Dependent Care Credit for someone even if you can't claim them as a dependent because you're a dependent.

The catch in all of these, except for the QC under 13, is that the other person must be living with you and unable to care for themselves.

[rgtaxservice]

Don't forget.

Don't forget the gross income test. It can't exceed $3650.

[dtlee]

Right, but as Gary indicates, even if a Qualifying Relative fails the Gross Income Test, they may be eligible for the dependent care credit if disabled.

Gary...thanks for adding that. It had totally slipped my mind.