Other Dependent Credit

[Hoosier]

Struggling with the dependency rules on this one... Taxpayer (MFJ) has a 30 year old child who has no income and does not file a tax return. The child does not live with the taxpayer at all. The taxpayer supports the child financially. Trying to determine if the taxpayer can claim the child as a dependent and the Other Dependent Credit ($500) on the 1040?

[FEDUKE404]

Qualifying child

In addition to the qualifications above, to claim an exemption for your child, you must be able to answer "yes" to all of the following questions.

• Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
• Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
• Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.
• Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support.
• Are you the only person claiming them? This requirement commonly applies to children of divorced parents. Here you must use the “tie breaker rules,” which are found in IRS Publication 501. These rules establish income, parentage and residency requirements for claiming a child.

[TaxGuyBill]

The taxpayer supports the child financially.

If they pay for over 1/2 of his support, yes, from what you have said they can claim him as a dependent.

But you need to be sure that they DO pay for over 1/2 of his support.


Is there any portion of the dependency tests that you are unsure about in this situation?

[Hoosier]

The child is struggling with addiction issues and has no income sources. The taxpayer rents an apartment for the child, pays utilities, food and virtually all other support including medical support for the addiction. Based on discussions with the taxpayer, I feel confident that the over one-half of support is being provided.

[TaxGuyBill]

Qualifying child

That is for a "Qualifying Child". Hoosier is asking if the child is a dependent, so a "Qualifying Relative" is what would probably apply.

[FEDUKE404]

That is for a "Qualifying Child". Hoosier is asking if the child is a dependent, so a "Qualifying Relative" is what would probably apply.

Tests To Be a Qualifying Relative

• The person can't be your qualifying child or the qualifying child of any other taxpayer.
• The person either (a) must be related to you in one of the ways listed under Relatives who don't have to live with you , or (b) must live with you all year as a member of your household² (and your relationship must not violate local law).
• The person's gross income for the year must be less than $4,300.
• You must provide more than half of the person's total support for the year.

Relatives who don't have to live with you.

A person related to you in any of the following ways doesn't have to live with you all year as a member of your household to meet this test.

• Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). (A legally adopted child is considered your child.)