Support Test for Child with SSI

[kam]

Family with 25 year old totally and permanently disabled child. Child receives $750/month in SSI (not SSDI). Is the SSI considered in the child's support contribution, or, because it is welfare, is it considered third party/state support? Only affects dependent status since EIC has no support requirement. Thanks for your input!

[Lion]

CCH's AnswerConnect says taxable and nontaxable: http://tax.cchgroup.com/smartcharts/...40_Wkst_48.htm

[kam]

That CCH site is asking for log-in (don't have one). Are you implying that their worksheet says that if it is nontaxable income (like SSI) it is support by a third party/state? Thanks

[Lion]

No, their worksheet asks for the total income to the person being supported, taxable and NON-taxable income. I imagine it uses a worksheet from an IRS Pub.

[TAXNJ]

See if this post helps

https://forum.thetaxbook.com/forum/discussion-forums/main-forum-tax-discussion/296789-mfj-and-ssi

[TAXNJ]

Also see if this applies to you scenario

https://www.ssa.gov/policy/docs/policybriefs/pb2004-02.html

[nwtaxlady]

Family with 25 year old totally and permanently disabled child. Child receives $750/month in SSI (not SSDI). Is the SSI considered in the child's support contribution, or, because it is welfare, is it considered third party/state support? Only affects dependent status since EIC has no support requirement. Thanks for your input!

What did you come up with? I have the same exact scenario. Child is 25 and receives $750 SSI per month because he is autistic. He managed to go to college etc. Now that he is done with school and not working, but receives this SSI income... now what? What did you end up doing?

[kam]

Here's my conclusion. The Disability Pub 907, page 3 states "Social Security benefits do not include SSI payments...". The VITA 4012 has two notes that are applicable. The first states "if a person receives Social Security benefits and applies them toward support, they are support by that person". However, SSI payments are NOT Social Security benefits, therefore they are "welfare" type benefits. The second note then applies which states " benefits provided by the state for a needy person (welfare, food stamps, housing, SSI) are considered support by the state". Therefore, my conclusion is that SSI payments should be considered third party/state support and therefore, the disabled child can be claimed as a Qualified Child dependent. I'm open for any feedback on this conclusion. P.S. The tax code should not be this ambiguous!