Dependency and Disability

[S T]

Just received an email with a question

Taxpayer that has a 15 year old son that has Cerebral Palsy - taxpayer has kept him at home for all of these years and cared for (yes some State Programs) but did not disqualify for the Dependency Exemption. (Just no medical deduction and child care credit)) due to State Programs available. Otherwise qualified for supporting for a dependenent exemption.

New question for 2012 or 2013 - taxpayer is looking to place the child into a "Group Home" - there would be no cost to taxpayer to do this

Will placing the child into a "Group Home" and having no cost then relate to the "loss" of the support issue for a dependency exemption?

Thanks,

Sandy

[Gretel]

When you say "Group Home", do you mean 365 days a year, forever?

[Gary2]

Since you're not asking about residency, I assume you've already written off the Qualified Child rules.

Support means all support, unless there's a specific exemption (such as scholarships in some circumstances). There are some income exemptions for disabled dependents, but I don't know of any exemptions off the top of my head for room and board under these circumstances. State aid such as this typically counts as support provided by the state.

[Kram BergGold]

Qualifying Child

Until the child is 19 the only support issue is, did the child provide over 1/2 of support. It seems to me that the parent and the state are providing over 1/2 of support so parent gets the exemption. Once the child becomes a qualifying relative then I think the parent loses the exemption because of not providing more than 1/2 of support.

[Gary2]

Until the child is 19 the only support issue is, did the child provide over 1/2 of support. It seems to me that the parent and the state are providing over 1/2 of support so parent gets the exemption. Once the child becomes a qualifying relative then I think the parent loses the exemption because of not providing more than 1/2 of support.

Only if the child meets the residency requirement, which is why Gretel asked her question and for which I assumed the answer is no. Are you stating that a disabled child living in a group home still meets the residency requirement? If not, then we're back to the support test for Qualifying Relatives, regardless of age.

[Dusty2004]

What the home qualifies as?

Only if the child meets the residency requirement, which is why Gretel asked her question and for which I assumed the answer is no. Are you stating that a disabled child living in a group home still meets the residency requirement? If not, then we're back to the support test for Qualifying Relatives, regardless of age.

I guess the answer to your question Gary would be what does the home qualify for? If it is for medical purposes mainly then could be qualified as a temporary absence for medical purposes?

Dusty

[S T]

Thanks for the Questions and Answers - I believe I need more info from the Mom
I believe it is a State run program for "disabled" which the child is, and due to the Mom's low income, there is not a share of cost - Also going to ask if it is a "Day" program or if it is "full time residence" program. I originally thought "full time residence program" but will have the Mom clarify.

Will post more later when I have some more details. But the responses assisted for more fact finding information.

Sandy

[S T]

I think I have enough information now, and have probably answered my own question to the OP

I had the Dependent age wrong - the dependent actually turned age 18 in 2012. Dependent at age 18 qualified to collect Social Security Disability and also qualfied under Calif Medi-Cal to enter into a Group Home (Resident) Would only go to Mom's (t/p) home on weekends, and Mom is only paying for some necessary items, as in clothing, personal items, etc. - Mom (t/p) states--- kinda like a kid going to College - but this is really different, as for now he won't go back home.

My analysis then, is that this 18 year will no longer qualify as a dependent due to receiving SSD and Medi-Cal paying - Mom (t/p) is not contribution greater than 50%,

Is there something I am over-looking

Thanks,

Sandy