child age 25 (in a wheelchair) and dependency ?

[nwtaxlady]

Client has a 25yr old daughter who lives with her. She is in a wheelchair. So I looked up dependency and TTB page 3-13 says any age if permanently & totally disabled and see page 3-15. On that page it says a person is permanently and totally disabled if he or she CANNOT engage in any substantial gainful activity because of a physical or mental condition that a doctor has determined has lasted or can be expected to last continuously for at least a year or can be expected to lead to death.

The 25yr old daughter does work and made more than $4,000. Mom (my client) has to take her to work. And also had the expenses of a Car chair for van $3850 and also having a contractor put in a wheel chair ramp at the home.

1st. Is the daughter a dependent? She works, so does that mean she is engaged in a substantial gainful activity?

2nd... Can the Mom claim any of the above expenses?

[TAXNJ]

Client has a 25yr old daughter who lives with her. She is in a wheelchair. So I looked up dependency and TTB page 3-13 says any age if permanently & totally disabled and see page 3-15. On that page it says a person is permanently and totally disabled if he or she CANNOT engage in any substantial gainful activity because of a physical or mental condition that a doctor has determined has lasted or can be expected to last continuously for at least a year or can be expected to lead to death.

The 25yr old daughter does work and made more than $4,000. Mom (my client) has to take her to work. And also had the expenses of a Car chair for van $3850 and also having a contractor put in a wheel chair ramp at the home.

1st. Is the daughter a dependent? She works, so does that mean she is engaged in a substantial gainful activity?

2nd... Can the Mom claim any of the above expenses?

Sounds as if the person is working for pay or profit – think it shows substantial gainful activity.

Whereas you note, TTB 3-15 (which cross references IRS publications, etc) says “Permanently and totally disabled. A person is permanently and totally disabled if he or she cannot engage in any substantial gainful activity because of a physical or mental condition that a doctor has determined has lasted, or can be expected to last, continuously for at least a year or can be expected to lead to death”

Since there may be more information then what is in your post - suggest For your 2nd... Reference in TTB and IRS pubs and code - Medical expenses to see what may be applicable

[spanel]

Client has a 25yr old daughter who lives with her. She is in a wheelchair. So I looked up dependency and TTB page 3-13 says any age if permanently & totally disabled and see page 3-15. On that page it says a person is permanently and totally disabled if he or she CANNOT engage in any substantial gainful activity because of a physical or mental condition that a doctor has determined has lasted or can be expected to last continuously for at least a year or can be expected to lead to death.

The 25yr old daughter does work and made more than $4,000. Mom (my client) has to take her to work. And also had the expenses of a Car chair for van $3850 and also having a contractor put in a wheel chair ramp at the home.

1st. Is the daughter a dependent? She works, so does that mean she is engaged in a substantial gainful activity?

Not a dependent because she made more than $4000.

2nd... Can the Mom claim any of the above expenses?

Not a dependent because she made more than $4000.

Yes she can claim the medical expenses. Full car chair & wheelchair ramp minus the value added to the home.

Chris

[Jiggers]

And she may qualify for EIC since she isn't claimed on another's return.

[spanel]

And she may qualify for EIC since she isn't claimed on another's return.

She cant be claimed on another return (over 24 and made over $4000). Only for EIC on herself.

Chris

[TAXNJ]

Isn't that what JIGGERS posted?

She cant be claimed on another return (over 24 and made over $4000). Only for EIC on herself.

Chris

Isn't that what JIGGERS posted? Or reading this wrong?

[BHoffman]

Isn't that what JIGGERS posted? Or reading this wrong?

Great minds think alike

[spanel]

Great minds think alike

Yep. I missed read it. Sorry

Chris

[TaxGuyBill]

To qualify as a disabled (to qualify as a Qualifying Child), the rule isn't that the person can't have Gainful Activity. The rule is that the person can't have SUBSTANTIAL Gainful Activity. Having over $4000 of income doesn't necessarily mean it is "substantial gainful activity".

Although the IRS has their own viewpoints, a person needs to earn over $1090 per MONTH (over $13,000 per year) before the Social Security Administration views it as a "Substantial Gainful Activity" (see link). In my opinion, unless there is evidence that the IRS views it differently, I would go with the Social Security Administration's definition of Substantial Gainful Activity.

https://www.ssa.gov/oact/cola/sga.html

https://www.ssa.gov/redbook/eng/defi...lity.htm#&a0=0

[MANDAN]

Dependent of a disable daughter

Yes. Mother can claim her daughter even if she made more than 4,000. As long as the daughter does not provided over half of her own support.

[spanel]

Yes. Mother can claim her daughter even if she made more than 4,000. As long as the daughter does not provided over half of her own support.

Under what?

Qualifying Child? Are we saying because the daughter is disabled we overlook the $4000 qualifying relative rule?

Chris

[nwtaxlady]

Daughter does NOT receive Soc Sec because she is working. Also medical expenses???

I asked the client if the daughter is receiving Social Security disability and she said no. No because she is working. So I perceive that as gainful activity and she does not qualify as a dependent. Just as she does not qualify for Social Security because she is working.

I am still unclear as to if Mom can deduct medical expenses such as braces for her and also the wheelchair ramp and car chair for van etc.

What I have read is the medical expenses must be for a dependent. If someone else knows something different please enlighten me!

[Lion]

But, you want some documentation that the child is permanently and totally disabled. Doctor's affidavit or she's on SS Disability, some independent third-party qualified to certify the extent of the child's disability. If she can document her disabled status, then Age is no longer an issue for Qualifying Child. All other points remain, though, such as not earning more than half her own support.

[nwtaxlady]

I did find that the medical expenses are deductible! Thanks!

There was an exception for those not claimed on dependents due to income over $4000. She can claim her daughters medical expenses!

[TAXNJ]

viewpoints to be shared

To qualify as a disabled (to qualify as a Qualifying Child), the rule isn't that the person can't have Gainful Activity. The rule is that the person can't have SUBSTANTIAL Gainful Activity. Having over $4000 of income doesn't necessarily mean it is "substantial gainful activity".

Although the IRS has their own viewpoints, a person needs to earn over $1090 per MONTH (over $13,000 per year) before the Social Security Administration views it as a "Substantial Gainful Activity" (see link). In my opinion, unless there is evidence that the IRS views it differently, I would go with the Social Security Administration's definition of Substantial Gainful Activity.

https://www.ssa.gov/oact/cola/sga.html

https://www.ssa.gov/redbook/eng/defi...lity.htm#&a0=0

But, now you are referring to the SSA but I think the Original Poster is looking at the other government agency (IRS), so if you can share for the Original Poster what you say "the IRS has their own viewpoints", think that might help toward making a decision.

But you do give information that may help with Social Security for Social Security purposes.

Since there may be more information then what is in the original post by the Original Poster.