Claim exemption for child that died

[WhiteOleander]

Taxpayer's child was killed in a car accident. He was 18. The accident was in May. He would have been 19 in July. He still lived at home. The taxpayer and spouse still supported him. He graduated high school in 2013 so he was no longer a student. He did have a job. He earned more than 3950.00. So, since he would have been 19 at the end of 2014 and was not a student and earned more than 3950.00 he could not have been a dependent on the taxpayer's return had he not passed away. But, since he was actually still 18 when he passed away, can the taxpayer claim him? It doesn't appear that the taxpayer can claim him. But, I just wondered if anyone knew of any special rule since the child passed away while still 18.
Thanks

[ATSMAN]

Assuming the child was alive at the end of 2014 would the taxpayer be able to claim him as a dependent using the eligibility tests? If yes then they can claim. So if the child died in the tax year it is assumed for tax purpose he was alive until the close of the tax year.

The since this is the taxpayer's child that $3950 does not come into play. The test is child did not provide more than half of the total support.

[tpnl]

Not sure . . .

If the child would have lived, he would have been 19 at the end of 2014 and therefore would fall under the qualifying relative of a taxpayer AND the gross income does make a difference. TTB on page 3-13 identifies a qualifying relative as "A son . . . . ." So, I believe the gross income is a factor in this situation.

Now, because he died and was 18, if there is an exception, I don't know. Would you be able to claim the child tax credit if the child died while he was 16, but would have been 17 by 12.31.xxxx?

[mactoolsix]

I agree with tpnl - the qualifying relative test is what you need to meet.

Interestingly, there is the kidnapped child exception.

Which has these three limitations: (frOm pub 501)

This treatment applies for all years until the earliest of:

1. The year the child is returned,

2. The year there is a determination that the child is dead, or

3. The year the child would have reached age 18.

Thus, once a death occurs, the exemption is lost in that year.

Using that it would not be logical to allow a qualifying relative dependency for a person that died during the year.
But then what tax law is logical?



My condolences to the family - no one should have to bury their child!
mIKE

[WhiteOleander]

Thanks for the input. I guess they can't take the exemption.