question re: claiming a parent dependant

[IEOMB]

Hello, i have a client whos mom lived with her in all of TY2012. moms only income is a small amount of money received from Poland from her husbands (deceased) pension or their version of social security. The amount received is $4700. If we can determine that this amount is Poland's version of soc security, then I believe my client can file as HofH and claim the parent as a dependant (since greater then 3800$ but does not consitute gross income (see page 3-19 the taxbook 2012 deluxe edition). If it is determined as Polands version of Pension, then the client must file as single and not claim the parent as a dependant. thoughts?
Kind regards, Mark

[Roland Slugg]

I tried to find a definitive cite about this, because it's a question that comes up with some regularity on this forum, but I found nothing. Therefore, I'll just give you my best guess at the answer.

Even if the mother's income is, in fact, Poland's equivalent of our social security, it is not U.S. social security, and I am not aware of any provision that allows for equivalent treatment of similar benefits from other countries.

Accordingly, I don't believe your client is entitled to claim her mother as a dependent, nor use HOH filing status. If I am incorrect, I would appreciate seeing another post here containing an authoritative cite to the contrary.

[Gene V]

I would lean more toward it being Poland Social Security and not taxable in US
You can google the website on the subject--lots of information
here is one on treaty

http://www.ssa.gov/international/agreements_overview.html

What type of Form did they show the income on? Just curious

[IEOMB]

the TP is going to email me the form they received. i'll provide more details once i get it. Effectively, it is called ZUS which is their equiv of s.s. in poland. The Mother has dementia, alzheimer's, etc. and cannot care for herself. Unfortunately, i think this doesn't matter since the tests on pg3-18 do not take that into account. I'm leaving toward yes on being a depandant and HofH status..but i really wish there were some clear guidance in this taxbook or somewhere online....

Anyway, if you come across more concrete info, kindly let me know.

Mark

[taxea]

If she is unable to care for herself have her get a doctors statement of disability to start with. If the TP pays more for her support than she does and if she is not required to file a return based on the amount of her world wide or taxable income, with all other requirements covered the TP could take her as a dependent.

[oceanlovin'ea]

German social security

I have a client who receives social security from GErmany. They send NO form to her at all. The money is deposited in her bank account once a month. On her tax return it is added to U S social security. She also gets Canada's equivilant of social security but they send a form. It is all put together as Social security.

my client had a letter from Germany which I had to get translated. But you can google Poland social security and probably find out something.

If the mother is not able to take care of herself, they must be paying someone to help take care of her. Whether paid by mother or daughter, it would amount to same end. Daughter could claim mother as dependent.

Linda, EA

[Gretel]

Pensions, as they are known here, do not exist in Germany, and as far as I know, also not in other European countries. Payments to the SS administration are much higher in Germany and people can make a much better living with this income then people can here. Hence, I doubt that any "pension" income from Europe is anything but Social Security.

Because this whole concept was unfamiliar to me when I studied taxes I had a hard time wrapping my mind around it.

[cpahispano]

Germany Tax Treaty

As per the Germany and US Tax Treaty the Social Security is exempt, so you may claim the mother as a dependent.
) Wages, salaries, and similar compensation and pensions paid by the Federal
Republic of Germany or by its Laender or by municipalities, or pensions paid by a public
pension fund thereof to a natural person, other than a citizen of the United States and other thanan individual who has been admitted to the United States for permanent residence therein, shall
be exempt from tax by the United States

[Koss]

Social Security

That's interesting, but...

the original post involves Poland, not Germany.

And with respect to Germany, the treaty provision you are citing is applicable only to a person other than a US citizen or permanent resident. So that section of the treaty applies only to nonresident aliens.

BMK

[Bees Knees]

U.S. Tax Treaties

The IRS has a website that might help you find the correct answer. You need to look at whatever tax treaty the U.S. has with Polland to determine how to treat pension income from Poland.

http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z

[taxea]

The IRS has a website that might help you find the correct answer. You need to look at whatever tax treaty the U.S. has with Polland to determine how to treat pension income from Poland.

http://www.irs.gov/Businesses/Intern...aties---A-to-Z

I agree. Unless the regulations say it is reported as US social security I would put it on Ln 21, make any required adjustments there and include a staatement.