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Support Test

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    Support Test

    Older Couple that has a son (permanently disabled Bi-polar) Son is on disability & get
    $12,000 per year. Son sleeps in another house they own but lives all day at their house. Son spends all his money on his support (big medical cost) Older couple wants to claim him on their tax retutn.
    They provide all his meal cost, since he stays all day at their house he incure 1/3 of Utility cost,property tax cost and heat cost. If they can show they pay more than 1/2 of the $12,000 can they claim him. He meets
    all the Dependency test (QRelative) but question the support test. What you say

    Qualifying Child?

    He appears to meet the tests for a qualifying child. The age limitation is not applicable if the child is permanently and totally disabled.

    The support question is still relevant, but the support test is different for a qualifying child. If he is a qualifying child, then the question is whether he provided more than half of his own support--not whether the parents provided more than half of his support.

    I think they can in fact claim him as a dependent if the support test is met. That's a factual question. You could try using the worksheet in Publication 17.

    What I find interesting is the question of whether he really lives with them, since he sleeps in a different house. The fact that they own the house is irrelevant. It certainly means that they are providing support. But if he doesn't live in their household, then he couldn't be a qualifying child. He could, however, still be a qualifying relative, since he is their son.

    On the other hand, one could argue that his permanent domicile is the parents' home, and that he often chooses to sleep elsewhere, and that this is a temporary absence. It all turns on facts and circumstances. Does he have his own room at their house? What about driver's license and voter registration? And what is his address of record with the Social Security Administration?

    The question of domicile is only relevant to whether he is a qualifying child. If the parents are providing more than half of his support, then he is clearly their qualifying relative. But if the residency test is also met, and he is their qualifying child, then the parents might be eligible for EIC.

    Burton M. Koss

    The map is not the territory...
    and the instruction book is not the process.


      Originally posted by arlo View Post
      If they can show they pay more than 1/2 of the $12,000
      Nit: It needs to be "pay more than $12,000", not more than 1/2. If they only paid 1/2 of the $12K, it would only be 1/3 of the total funds available for support.


        The value of the rent they are forgoing on the house the son sleeps in is also considered support by the parents.