Dependent child earns $6000 plus in 2011

[prowell]

New at tax preparing and need a little help:
Taxpayer single mom with 19yr child who was a HS student 5 months in 2011- child earned $6000 plus in income at a local dress shop in 2011. Taxpayer provides over half support for child and child lived in home 12 mo in 2011. Can taxpayer file as HOH and
claim child as dependent for 2011 even if child earned $6000 plus at local dress shop?

[Dusty2004]

Document

New at tax preparing and need a little help:
Taxpayer single mom with 19yr child who was a HS student 5 months in 2011- child earned $6000 plus in income at a local dress shop in 2011. Taxpayer provides over half support for child and child lived in home 12 mo in 2011. Can taxpayer file as HOH and
claim child as dependent for 2011 even if child earned $6000 plus at local dress shop?

Document what the mothers expenses were to prove she provided over 1/2 support.

Dusty

[WhiteOleander]

Document what the mothers expenses were to prove she provided over 1/2 support.

Dusty

Since the child is still a full time student in 2011, the rules apply as if the child were 18 or under. So, the mother does not have to provide over 1/2 the support. The child can not have provided over 1/2 of his own support.

[Larmil]

Document what the mothers expenses were to prove she provided over 1/2 support.

Dusty

The taxpayer does not have to provide over 1/2 support to claim a qualifying child. See TTB 3-15.

[Gary2]

Although people are correct that the taxpayer doesn't have to provide more than half the support, nevertheless there may be concern that the child is providing more than half. Often someone that age is spending all their income.

In some areas, the FMV of the child's share of the rent might be $500/month, plus utilities, creating a quick $6K of support expenses. Then throw in a share of the medical insurance, if the child is on the parent's. If the child isn't chipping in to any of this, then the decision could be easy.

But in other areas, the household support might only be $200/month, with no medical insurance costs and the child buying all clothing and eating out most of the time. The child's income could easily be more than half the support.

[Burke]

New at tax preparing and need a little help:
Taxpayer single mom with 19yr child who was a HS student 5 months in 2011- child earned $6000 plus in income at a local dress shop in 2011. Taxpayer provides over half support for child and child lived in home 12 mo in 2011. Can taxpayer file as HOH and
claim child as dependent for 2011 even if child earned $6000 plus at local dress shop?

As described above, child meets "qualifying child" tests. Therefore, gross income is disregarded.

[Larmil]

As described above, child meets "qualifying child" tests. Therefore, gross income is disregarded.

There are 7 tests for a QC. Child could have been married?

[dan doshan]

Don't forget that even if the child provided over half of her own support the child would still be a qualifying child for the EIC. And I think for HH filing status for the Mom, although I always have to double check that.

[taxea]

Although people are correct that the taxpayer doesn't have to provide more than half the support, nevertheless there may be concern that the child is providing more than half. Often someone that age is spending all their income.

In some areas, the FMV of the child's share of the rent might be $500/month, plus utilities, creating a quick $6K of support expenses. Then throw in a share of the medical insurance, if the child is on the parent's. If the child isn't chipping in to any of this, then the decision could be easy.

But in other areas, the household support might only be $200/month, with no medical insurance costs and the child buying all clothing and eating out most of the time. The child's income could easily be more than half the support.

Really, children of this age pay rent to their parents???? I must say those are some parents. They actually teach their child financial responsiblilty!

[Corduroy Frog]

Funky Math

So, the mother does not have to provide over 1/2 the support. The child can not have provided over 1/2 of his own support.

This may be the rule, but stop and think about this. If mother furnishes less than 50% and child cannot furnish OVER 50%, then between the two of them less than 100% of the support is accounted for. If the child cannot furnish over 50% then pure math tells you the mother must be required to furnish over 50%.

Oh yes, I'm aware that there might be 3rd party sources, such as child support, state assistance, SSI, etc. And if this is the case, there is no antithesis as mentioned above.

But I bring this up because of my duty as a tax preparer to sort through information, and taxpayers giving me statistics that just don't add up. [My favorite is joint custody where each parent claims that they have the child exactly 50% of the time - but that is another conversation]

[Dusty2004]

You are correct

Since the child is still a full time student in 2011, the rules apply as if the child were 18 or under. So, the mother does not have to provide over 1/2 the support. The child can not have provided over 1/2 of his own support.

I stated that incorrectly. What I was thinking was since it was mom and son someone had to provide the support - I was thinking only of mom and son. Not someone else who could be the picture / household.

Dusty