SSI Income

[S T]

Question, I believe I know the answer , but thought I would recheck

Have a Taxpayer - their daughter that they have claimed as a dependent in the past to age 17-18 - she is "minor autistic" but qualifed for the SSI program and now receives benfits starting in 7/2013.

My thought is that the parents (taxpayer) can no longer claim her as a dependent on their tax return, as it will jeopardize her SSI benefits

Obviously daughter on SSI does not have to file a tax return

I am only looking at the Parent's return for dependency exemption.

Thoughts,

Sandy

[Koss]

Support Test

Under federal tax law, the only issue is whether the support test is met. Is she under age 19? If so, then the support test for a qualifying child is: Did she provide more than half of her own support?

SSI is considered support provided by the state.

I have no idea whether her SSI benefits would be affected if her parents claim her as a dependent. That's an interesting question.

Regardless of whether she is claimed as a dependent, she would have had to disclose that she was living with her parents when she applied for SSI.

So it may not make a difference. But I don't know enough about SSI criteria to address the question.

If she did not begin receiving benefits until July, 2013, it seems likely that her parents provided more than half of her support. But even if they didn't, she may still meet the support test, because the SSI benefits are treated as support provided by the state.

BMK

[S T]

I really don't like to correct too much on thread posits and try not or at least try not insult and be "gentle"

Koss - I am sure it is an oversight on your part in the prior reply - the SSI is a Federal income supplemental program not State Program - however it might be that the State integrates on some of this - so Federal/State combined ----thereby my concern about jeopardizing the "daughter's benefits"

My understanding that too much support or additional income will reduce her benefits - but then I am not clear on the rules either with an 18-19 year old, a little clearer on some people on the program in their 40-50's etc and also have State Medical ( as in Medi-Cal) and also can apply to HUD for housing.

Other points in your reply Koss are well taken - since it was only for approximately 6 months of 2013 - so maybe the dependency for the parents in 2013 is okay and we will have to revisit in 2014.

Just trying to do the right thing on completing the 2013 Tax Returns for the parents - I do not want the parents to lose a dependency exemption, but also do not want to jeopardize these new benefits for the "daughter"

Any thoughts or experience that can be shared, I welcome!

Sandy

[geekgirldany]

I found a couple of websites and in my reading it looks like it may jeopardize her SSI. I would be hesitant to claim her.

This is on parents but I think would still be relevant:

http://finance.zacks.com/claiming-parent-dependent-affect-her-ssi-ss-benefits-8737.html

If she's receiving free lodging from a relative, for example, the agency will count the market value of that housing as income and offset her benefit accordingly. If you are claiming her as a dependent and thus providing at least half of her support, she may exceed the income guidelines for SSI.

and

http://www.disability-claims.net/child_disability.html

Rules For Children 18 And Older

If a disabled child getting SSI turns 18 and continues to live with his or her parents, but does not pay for food or shelter, a lower SSI payment rate may apply.

This is Yahoo answers but gives a good info:

https://answers.yahoo.com/question/index?qid=20111114144126AAdm83g

SSI is for individuals who have no assets, income and sources of income.
By claiming her on your tax return you are making the statement you are supporting her at least for more than half of her needs and therefore her need for SSI will be jeopardized.
Contact SS agency for more information.