Social Security Support

[mbdkweaver]

I have a client that claims their 15 year old nephew as a dependent because both of the parents died. The nephew receives social security of $25,000 per year. Is this considered income for the support test for a qualifying dependent? Can they claim the nephew as a dependent because of this? I originally thought it depends if the social security was used to cover expenses or put into a savings account for the dependent. The social security money is being used to cover expenses for the dependent. Any help would be appreciated. Thanks.

[Lion]

Read IRS Pub 501 and fill out Worksheet 2 on page 15 and keep for your records to document your decision: https://www.irs.gov/pub/irs-pdf/p501.pdf