Claiming disabled brother as dependent 2018 vs 2017

[New York Enrolled Agent]

WHAT exemptions for 2018 ? ?
(There are none.)

FE

I believe this post on the NAEA board confirms TGB's post. It is a footnote from the Senate Amendment adopted in the Conference Bill for HR1

16 The provision also clarifies that, for purposes of taxable years in which the personal exemption
is reduced to zero, this should not alter the operation of those provisions of the Code which
refer to a taxpayer allowed a deduction (or an individual with respect to whom a taxpayer is
allowed a deduction) under section 151. Thus, for instance, sec. 24(a) allows a credit against tax
with respect to each qualifying child of the taxpayer for which the taxpayer is allowed a deduction
under section 151. A qualifying child, as defined under section 152(c), remains eligible for
the credit, notwithstanding that the deduction under section 151 has been reduced to zero.

[Rapid Robert]

Well, my friend, I mentioned the disability issue because (at this time) I don't know for a fact whether brother is getting SSI or SS.

My only point was not to muddy the water as to what it takes to be a dependent. If everyone knew all the rules by heart, we'd never get any questions here about it. Since the taxpayer cannot be a qualified child for other reasons, the matter of disability has no bearing whatsoever.

I also wanted to take the opportunity to point out that definition of disability used by SSA is not exactly the same as IRS, again just to help keep the waters clear.

While I trust that you will continue to correctly apply the rules, I always assume some poor soul in the distant future might re-visit this thread and need a little extra clarification. I guess there is sometimes an implication with "red herring" that it is done deliberately to mislead, but that is not what I was implying with my comment, sorry if it came across that way.

[Rapid Robert]

A client wishes to claim his adult, disabled (Soc Sec disability) brother as a dependent. Brother does not live with client,

The comment about "disability" is a red herring, has nothing to do with the question. We can only assume the brother might meet the test to be a Qualifying Relative, which has nothing to do with disability.

Even if the brother lived with taxpayer for at least half the year, to be a Qualifying Child above the age 19/24 test, requires permanent and total disability. Receiving SSDI or SSI is not sufficient to satisfy that requirement.

[TaxGuyBill]

I seem to recall that for 2018 - 2015 for purposes of qualification of dependency, the exemption amount (as indexed) will still continue? Just like before.

Anyone else have updated info??

Yes, the Code reads that it will continue to be indexed for inflation (although the method of calculating inflation changed).

WHAT exemptions for 2018 ? ?
(There are none.)

FE

Exemptions still exist. As you point out, the exemption amount for 2018-2025 is $0. However, that $0 amount does not affect other things, such as the amount of income a Qualifying Relative can make. That is still based on the inflation-adjusted amount of the 'old' exemption amount ($4050 in 2017).

[ATSMAN]

I think we will have many of these type of situations. Will be interesting to see what the new 1040 looks like.

I seem to recall that for 2018 - 2015 for purposes of qualification of dependency, the exemption amount (as indexed) will still continue? Just like before.

Anyone else have updated info??

[kathyc2]

A client wishes to claim his adult, disabled (Soc Sec disability) brother as a dependent. Brother does not live with client, and gross income test should not be a problem. The >50% support test could be challenging. (It's also unclear, at this time, whether brother gets Soc Sec disability or SSI.) Remains to be seen.

But here's the main question: For 2017, if the client meets the rules he then gets another personal exemption for his brother. Plain vanilla situation. However, for 2018, there are no "exemptions" so what, if anything, comes of possibly "claiming" the disabled brother in 2018?

One would think there would be some kind of federal credit rattling around out there, but I can't find anything definitive.

Ideas??

FE

As long as he meets the Sec 152 dependent rules, there would be a $500 credit. From the bill:

(4) PARTIAL CREDIT ALLOWED FOR CERTAIN OTHER DEPENDENTS.—

“(A) IN GENERAL.—The credit determined under subsection (a) (after the application of paragraph (2)) shall be increased by $500 for each dependent of the taxpayer (as defined in section 152) other than a qualifying child described in subsection (c).

“(B) EXCEPTION FOR CERTAIN NONCITIZENS.—Subparagraph (A) shall not apply with respect to any individual who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows ‘resident of the United States’.

“(C) CERTAIN QUALIFYING CHILDREN.—In the case of any qualifying child with respect to whom a credit is not allowed under this section by reason of paragraph (7), such child shall be treated as a dependent to whom subparagraph (A) applies.

[Twin Turbo Z]

I think we will have many of these type of situations. Will be interesting to see what the new 1040 looks like.

[FEDUKE404]

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