Dependency Test

[peggysioux]

Taxpayer provided separate home and support for his 27 year old and the 27 year old's daughter while daughter attended school. My question is can taxpayer claim granddaughter as a dependent under the qualifying relative rule if daughter does not claim child as qualifying child?

[Gary2]

Will the daughter be filing a return, and if she does, will it be strictly to claim a refund of withholding, with no credits taken?

[peggysioux]

Dependency Test

Daughter will not be filing a return.

[erchess]

Then I think

Grandpa can claim his granddaughter as a dependent exemption. I'm tired but if I remember right you can't get credits based on an other dependent. I suspect Grandpa can claim his daughter as an other dependent and get her personal exemption as well since she is properly not filing a return. If this is a new client you might want to speak with the daughter to verify that everything is on the up and up.

[Gretel]

If this is a new client you might want to speak with the daughter to verify that everything is on the up and up.

I think this would violate the privacy of Grandpa.

[taxmom34]

a question in my mind about this situation. i thought you could only take a parent as a dependent and that parent did NOT have to live with you. can you take a child and grandchild if they do not live with you?

[jimfrombx]

You are thinking of HOH for parent

[taxmom34]

TTB page 3-15 #5 says : member of household for more than six months is a requirement for dependency, am i wrong?

[ddoshan]

TTB page 3-15 #5 says : member of household for more than six months is a requirement for dependency, am i wrong?

Your looking at rule for Qualifying Child. Above would be rules for qualifying relative.

[Mrssanny]

Dependency rule a self employed

For purpose of dependency rule a self employed with gross income of 7500 for 2017 and a his profit was (Haircut Salon)3500 can be claim as a dependent by the parents. knowing that the profit was less the 4050 which is a Exemption

[New York Enrolled Agent]

For purpose of dependency rule a self employed with gross income of 7500 for 2017 and a his profit was (Haircut Salon)3500 can be claim as a dependent by the parents. knowing that the profit was less the 4050 which is a Exemption

§152(d)

(d)Qualifying relative

For purposes of this section—

(1)In generalThe term “qualifying relative” means, with respect to any taxpayer for any taxable year, an individual—
(A)...,
(B)whose gross income for the calendar year in which such taxable year begins is less than the exemption amount (as defined in section 151(d)),
(C)...,

[Rapid Robert]

For purpose of dependency rule a self employed with gross income of 7500 for 2017 and a his profit was (Haircut Salon)3500 can be claim as a dependent by the parents. knowing that the profit was less the 4050 which is a Exemption

Looks like you've revived an old thread because you searched for the topic before asking your question, which is good.

You leave many details out. Are we talking about a Qualifying Child or a Qualifying Relative/Other (all dependents must be one or the other). Your understanding of gross income may not be correct. It is not net profit, so the $3,500 number does not matter at all. All that matters is the gross revenue of $7,500, and any possible Cost of Goods Sold, which would be subtracted before coming up with Gross Income. As a salon, maybe he sells products, but how much? That will ultimately determine. If he was a tax preparer, for example, the full $7,500 would almost certainly be considered Gross Income, therefore not meeting the requirements of Qualifying Relative/Other.

[taxea]

Taxpayer provided separate home and support for his 27 year old and the 27 year old's daughter while daughter attended school. My question is can taxpayer claim granddaughter as a dependent under the qualifying relative rule if daughter does not claim child as qualifying child?

Daughter is over school age and neither lived with him. Unless you provide more detail neither may qualify as dependent.

[abctax]

Old...

Daughter is over school age and neither lived with him. Unless you provide more detail neither may qualify as dependent.

You're responding to the six-year old part of the thread. There's a new twist & question as of 2.15.18