Dependent of Another?

[quicksam]

Have a client that has a 19 year old son that lives with him and his wife. The son pays more than half of his own support. The son is also a full time student.

Client claims son for EIC. He doesn't claim him for a dependent because son pays more than half of his own support.

My question is how would the son file his taxes?

Does he file as Single claiming himself or does he file single and mark dependent of another?

[Kong]

What a Parent

He files single dependant of another. Lets hope he did not earn big bucks, because hes going to pay any taxs due.

[Redneck]

Single

He files single not a dependent of another. But answers the question yes that he is a qualifying child of another person for EIC.

[Koss]

Not a dependent

He files single not a dependent of another. But answers the question yes that he is a qualifying child of another person for EIC.

Agree with Redneck. Determination of dependent status is not affected by the fact that he is a qualifying child of his parents for purposes of EIC.

As for EIC: Even if you do not indicate that he is the qualifying child of another person for EIC, the software won't give him EIC anyway. He's under 25 and he doesn't have a qualifying child.

Burton M. Koss

[quicksam]

Koss,
So you are saying to file him as Single and claim his own exemption. The IRS told my client that the son could not claim his own exemption because the Father claimed him for EIC. Keep in mind that the Father did not claim him as a dependent.

He says the agent told him that when the Father claimed the EIC that forces the son to file as dependent of another.

What does everyone else think?

[DonPriebe]

I think the IRS agent was wrong.

(Dad is correct. Son claims his own deduction, dad claims him for EIC only)

[Kram BergGold]

Irs?

Why would you think an answer from IRS is correct. The son provided more than 1/2 of his support. He claims himself.

[quicksam]

I never really believed the IRS Agent was correct. I have always filed it where the son would claim himself and the parents just for EIC if the child pays more than half of their own support.

However, It just got me thinking and I wanted to reassure myself that the way I am thinking is correct. Just didn't know if the rules where the exemptions and credits could no longer be split up would apply in this situation.

I don't believe it is.

Thanks for everyones response.

Lester

[jainen]

Me too

>>It just got me thinking<<

Me too. I even started to write a response about not splitting benefits, that the unified definition means you can't be a QC to one person under one set of rules and a QC to a different person under different rules in spite of the ambiguity that there are five different versions of the unified rule, but it doesn't apply here anyway because he's only a QC to one person under one rule and it doesn't say anywhere that a QC can't claim his own exemption if the parent is not otherwise eligible.

[Koss]

Splitting Benefits

>>It just got me thinking<<

Me too. I even started to write a response about not splitting benefits, that the unified definition means you can't be a QC to one person under one set of rules and a QC to a different person under different rules in spite of the ambiguity that there are five different versions of the unified rule, but it doesn't apply here anyway because he's only a QC to one person under one rule and it doesn't say anywhere that a QC can't claim his own exemption if the parent is not otherwise eligible.

Agree with Jainen. I wrote about this last year. It does not violate the "no division of benefits" rule for a person to claim their own exemption while someone else claims them as a qualifying child for EIC.

The reason is very subtle, and very technical, but very important for certain other issues that crop up: A personal exemption is not a dependent exemption.

Personal exemptions are claimed on lines 6a and 6b. Dependent exemptions are claimed on line 6c.

It's not word game. You cannot be a dependent of yourself. If you provide more than half your own support, you are not a dependent of anyone. You are independent.

You can't be your own qualifying child, either. You don't meet the relationship test. Self is not on the list of qualifying relationships.

Think I'm being goofy? Maybe. But think about all the other tests we use... like student loan interest or education credits, for example. The expenses must be paid for... the taxpayer, spouse, or dependent. Self is actually a qualifying relationship for an awful lot of stuff in the tax code.

But not for UDC.

Makes me think of the clients who come in now and then and want to use Head of Household filing status 'cause they live alone and pay all the household bills...

Burton