Sibling claiming brother/sister

[Bill Tubbs]

Pub 17, pg 25 -- NO dependency allowed

"Dependent Taxpayer Test

If you could be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent."

So, if the older sibling "could be claimed as a dependent" by his parents, (even if the parents elect not to claim him), he cannot claim anyone (i.e. the younger sibling) as a dependent.

Bill

[Taxref]

I have to admit I'm amazed by this thread; this is one that my first reaction was "no way." Reading through, though, I would have to agree that it is a huge loophole. I was certainly wrong on this issue.

I agree with Bill that the statement he quoted from Pub 17 would prevent the brother from claiming the sister in this particular case. However, if the brother was over 18 and not a student, it looks like he would be able to claim her.

[Jesse]

Hmmm.....

So IF the the 17 year old can prove he provided more than 1/2 of his own support then he could not be claimed as by his parents even if he is only 17 and is a student. In this case he could then claim Sis?

[BP.]

son's support test

With earnings of $15K, it is possible the son/brother could have provided more than half of his own support, meaning he would fail the support test to be a QC of his parents, opening the door to claim his sister.

[sea-tax]

And So the saga continues! I thought the new rules were going to make it easier. I thought I understood exemptions pretty well but the more I read the more it is making me say huh.

[jainen]

Way

>>my first reaction was "no way." <<

Way. A lot of people are surprised to learn about this and call it a loophole in the new law. They say Congress will fix it in a technical correction. But if you pull out your TY-2002 Quickfinder (I can say that because it was before we all switched to The Tax Book) you will see that it is not new at all. Page 12-6, last section on left.

According to the Congressional Budget Office, wealthy families have been snagging a billion dollars per year this way. There have been plenty of tax laws since this one was passed five years ago, and none of them "corrected" it. In fact, as of last year it was EXPANDED to other tax breaks. Therefore I conclude it is exactly what Congress intended, another tax cut for the rich.

[Brian EA]

Caught Napping

And So the saga continues! I thought the new rules were going to make it easier. I thought I understood exemptions pretty well but the more I read the more it is making me say huh.

Sea-tax, the more I read into it the more confusing it gets.I dont think the IRS is so stupid to let something like this go by.But then again it is the IRS.

brian

[sea-tax]

With earnings of $15K, it is possible the son/brother could have provided more than half of his own support, meaning he would fail the support test to be a QC of his parents, opening the door to claim his sister.

The tax code I don't think says is it "possible " but rather did he infact provide more than 50% support. He would actually have to prove that he actually spent the money.

Brian If I were you I would go through the support worksheet from IRS very carefully.

[BP.]

To Sea-tax

Sea-tax, I certainly did not intend that you should infer that he could claim his sister merely on the possibility that he provided more than half his own support. Of course actual numbers must be figured to determine this. That's the only way to know for sure. The "possibility" I referred to was because of the amount of his earnings, and to demonstrate that it was not a foregone conclusion that he is a dependent of his parents. Cheers!

[sea-tax]

Sea-tax, I certainly did not intend that you should infer that he could claim his sister merely on the possibility that he provided more than half his own support. Of course actual numbers must be figured to determine this. That's the only way to know for sure. The "possibility" I referred to was because of the amount of his earnings, and to demonstrate that it was not a foregone conclusion that he is a dependent of his parents. Cheers!

BP fair enough