Qualifying Relative - Grandson's Spouse

[Steve Stang]

I have a client who has her grandson residing at the same address. The grandson does not work and has no reportable income (W2 or Sch C) partly due to medical reasons and partly as he is in between college programs. The grandson recently married an Indian national. The taxpayer client is the sponsor for purposes of immigration paperwork and the granddaughter-in-law has resided with the grandson and taxpayer for more than 6 months in 2014.

As an immigrant, she did not have papers allowing her to work during 2014 so she has no reportable income either. (Only received permanent resident alien status in 2015).

So looking under the TTB chart for dependency tests, this person seems to qualify as a tax dependent as a 'qualifying relative'.

Am I missing anything? Does this make sense?

[DonB]

Were they married in 2014? Does she have a SS number? If yes / yes, I don't think you are missing anything.

[New York Enrolled Agent]

The grandson recently married an Indian national. The taxpayer client is the sponsor for purposes of immigration paperwork and the granddaughter-in-law has resided with the grandson and taxpayer for more than 6 months in 2014.

So looking under the TTB chart for dependency tests, this person seems to qualify as a tax dependent as a 'qualifying relative'.

I don't believe granddaughter-in-law is one of the specific qualifying relationship tests. If so, you need to look at §152(d)(2)

(H) An individual (other than an individual who at any time during the taxable year was the spouse, determined without regard to section 7703, of the taxpayer) who, for the taxable year of the taxpayer, has the same principal place of abode as the taxpayer and is a member of the taxpayer's household.

Maybe, I'm missing something.

[Steve Stang]

Yes, the grandson was married in 2014. Yes, they both reside at the same address with the grandmother. My review of past Forum threads indicates that 'other' types of dependents are allowed. I read somewhere on this Forum (2007 or 2008) about a child abandoned by his parents and taken in by someone else and that taxpayer could claim him as a dependent.

So, I figure by extension that his arrangement counts as well. As far as I can tell the new in-law meets the 7 tests: she's not claimed on someone else's tax return; while married she is not filing a tax return jointly with the spouse; she is a legal resident; Qualifying Relative as 'any other person other than taxpayer's spouse who lived with taxpayer all year as a member of household (I have to check her exact move-in date); not a qualifying child of any other taxpayer for 2014; relative with gross income under $3,900 (in this case $0); and support test where taxpayer provides mover half (in the form of no rent payment, paying medical, paying for immigration attorney, paying for most utilities (maybe not the cell phone).

[Steve Stang]

I don't believe granddaughter-in-law is one of the specific qualifying relationship tests. If so, you need to look at §152(d)(2)

(H) An individual (other than an individual who at any time during the taxable year was the spouse, determined without regard to section 7703, of the taxpayer) who, for the taxable year of the taxpayer, has the same principal place of abode as the taxpayer and is a member of the taxpayer's household.

Maybe, I'm missing something.

I can't find the reference to Section 152 in TTB. If you can forward that, great. But my reading of 'H' above says 'individual ... has the same principal place of abode.'

That clearly is the case in that they all live at the same address per grandson's driver's license and his new wife's immigration applications (all signed under pains and penalties of perjury' etc.

[mastertaxguy]

DEPENDENCY ISSUE-IRC Sec 152.

1. See TTB 3-13, left column "Qualifying Relative"
2. TTB 3-13, bottom of left column, refers to IRC Section 152 which can be found by a relatively easy Google(R) search or via other tax research, including TTB's On line versions.
3. The threat creator of course is free to prepare the return any way you want that your taxpayer client approves which seems to be the thrust of your postings.

[Steve Stang]

1. See TTB 3-13, left column "Qualifying Relative"
2. TTB 3-13, bottom of left column, refers to IRC Section 152 which can be found by a relatively easy Google(R) search or via other tax research, including TTB's On line versions.
3. The threat creator of course is free to prepare the return any way you want that your taxpayer client approves which seems to be the thrust of your postings.

I've reread TTB 3-13 and IRC 152. I'm trying to tap into the collective wisdom of others who may have had similar situations to this. Based on my reading I believe that the individual qualifies but I'm open to other interpretations if I'm missing something.

[mastertaxguy]

Oh?

1. Your scenario describes the "wife" as a part-year resident of the grandmother's home.
2. The wife is NOT related to the grandmother other than by marriage to grandmother's grandson. The Wife is not a child or descendant of a child, not a brother, sister, etc, not a step child/brother/sister, etc and not a daughter in law.
3. What you are missing form where I sit is the relationship test clearly set forth on P. 3-13 of TTB, top half of the page, right column, under Qualifying Relative, particularly the last bullet point as to 'ANY OTHER PERSON...WHO LIVED WITH THE TAXPAYER ALL YEAR AS A MEMBER OF THE TAXPAYER'S HOUSEHOLD." The exceptions mentioned on P. 3-16 of TTB, left column, heading Exception to Time Lived With Taxpayer do not apply to your factual scenario.
4. Further, the 'wife' is not a US citizen or US national.

[Steve Stang]

1. Your scenario describes the "wife" as a part-year resident of the grandmother's home.
2. The wife is NOT related to the grandmother other than by marriage to grandmother's grandson. The Wife is not a child or descendant of a child, not a brother, sister, etc, not a step child/brother/sister, etc and not a daughter in law.
3. What you are missing form where I sit is the relationship test clearly set forth on P. 3-13 of TTB, top half of the page, right column, under Qualifying Relative, particularly the last bullet point as to 'ANY OTHER PERSON...WHO LIVED WITH THE TAXPAYER ALL YEAR AS A MEMBER OF THE TAXPAYER'S HOUSEHOLD." The exceptions mentioned on P. 3-16 of TTB, left column, heading Exception to Time Lived With Taxpayer do not apply to your factual scenario.
4. Further, the 'wife' is not a US citizen or US national.

I guess I'm still confused (sorry).

The wife of the grandson meets the resident test (has a green card and living in the US). My reading of Test 3 doesn't seem to restrict it to US Citizen or US National. It does state 'OR RESIDENT OF THE UNITED STATES.' So I think that she meets that test fine.

Based on my read, she meets Test 1, Test 2, Test 3, Test 5, Test 6 and Test 7.

And my reading of the QR (right column) seems to say 'ANY OTHER PERSON" which she clearly is who 'LIVED WITH THE TAXPAYER' which she has. I'm not claiming her to be a child or descendant of a child but I would think that the 'ANY OTHER PERSON' part would cover such an in-law.

So my final question is the issue of length of time. She is not a temporary resident. They got married in 2014. I do not know the exact date. So I do see in the last bullet of Test 4 'WHO HAS LIVED WITH THE TAXPAYER ALL YEAR.' So this is where I'm hung up with my question.

There are exceptions for temporary absences. So I'm trying to clarify if this test requires that the marriage be on or before 1/1/2014 and that it be 12 consecutive months. Just as when there is a birth or adoption in a family, the child is considered having lived with the family all year long, is there any such precedent for a married couple. I honestly don't know so that's why I'm asking.

[Steve Stang]

So based on getting confirmation of the marriage date (6/2014), I will not be counting the granddaughter-in-law as a dependent for 2014.

Assuming that she stays married and resides at the address for all of 2015, I expect that I will be able to list her as a dependent for my client. (Based on the final bullet of QR in TTB). This also assumes that she earns under the $3,950 or $4,000 in 2015, I guess.

She has her work papers and proper immigration status and a SSN. If she works and earns more, then I guess it will be a different scenario.

Thanks