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    #1

    Another dependent question

    Just want to be sure I've got this straight in my head. Got a call today from a 19 year old, who lives at home with his parents. He asked me if he could claim his nephew as a dependent. After asking some questions, his Mom and Dad could also claim the nephew. (Mom works, Dad doesn't) Mom owns the home, pays the mortgage etc., but doesn't make much more than her 19 year old son. Isn't this a tie-breaker situation? If so, Mom probably has the higher AGI, so wouldn't that make her the one who can claim the nephew?

    If they can both claim the nephew, can they agree that one or the other will take the deduction? Or are they bound by the tie-breaker rule?

    BTW, I did ask about the nephews parents. The son was somewhat evasive on this subject, just saying that they did not work. Was not clear about where they were living.

    Any feedback most appreciated.
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    #2
    Originally posted by skhyatt View Post
    Just want to be sure I've got this straight in my head. Got a call today from a 19 year old, who lives at home with his parents. He asked me if he could claim his nephew as a dependent. After asking some questions, his Mom and Dad could also claim the nephew. (Mom works, Dad doesn't) Mom owns the home, pays the mortgage etc., but doesn't make much more than her 19 year old son. Isn't this a tie-breaker situation? If so, Mom probably has the higher AGI, so wouldn't that make her the one who can claim the nephew?

    If they can both claim the nephew, can they agree that one or the other will take the deduction? Or are they bound by the tie-breaker rule?

    BTW, I did ask about the nephews parents. The son was somewhat evasive on this subject, just saying that they did not work. Was not clear about where they were living.

    Any feedback most appreciated.
    The tie-breaker rule only applies if multiple taxpayers claim the same person and the person is a Qualifying Child of all of them. If only one person claims a dependent as a Qualifying Child, the tie-breaker rules do not apply.
    Doug

    Comment

      #3
      Nephew

      Originally posted by skhyatt View Post
      Just want to be sure I've got this straight in my head. Got a call today from a 19 year old, who lives at home with his parents. He asked me if he could claim his nephew as a dependent. After asking some questions, his Mom and Dad could also claim the nephew. (Mom works, Dad doesn't) Mom owns the home, pays the mortgage etc., but doesn't make much more than her 19 year old son. Isn't this a tie-breaker situation? If so, Mom probably has the higher AGI, so wouldn't that make her the one who can claim the nephew?

      If they can both claim the nephew, can they agree that one or the other will take the deduction? Or are they bound by the tie-breaker rule?

      BTW, I did ask about the nephews parents. The son was somewhat evasive on this subject, just saying that they did not work. Was not clear about where they were living.

      Any feedback most appreciated.
      Someone other than the child's parents can probably claim this child if the parents have no income, or have income that is below the threshold that triggers a filing requirement. Even if the parents had significant income, if they are all living in the same household, they can agree on who will claim the child. The tiebreaker rules are not applicable unless two different taxpayers actually claim the same child.

      The problem with the 19 year old is this:

      Curiously, like the thread from Larry, we need to know when he turned 19, because if he was under 19 at the end of 2007, that may make a big difference. If he was under 19 at the end of the year, or if he was a full time student, he may well be the qualifying child of his parents.

      Even if he is not the qualifying child of his parents, if his income is low enough, he may still be the qualifying relative of his parents.

      Any of these variables will have the effect of disqualifying him from claiming his nephew.

      For purposes of the dependent exemption, one who is a dependent of another taxpayer cannot claim any dependent exemptions. And for purposes of EIC, one who is a qualifying child of another taxpayer cannot have a qualifying child.

      Burton M. Koss
      koss@usakoss.net
      Burton M. Koss
      koss@usakoss.net

      ____________________________________
      The map is not the territory...
      and the instruction book is not the process.

      Comment

        #4
        The Son has earnings of around 21K. He indicated that he had filed last year for the first time and that his parents were not claiming him as a dependent.

        I will ask to see a copy of his previous years return.

        Sorry, I should have mentioned the above in the first post.

        Comment

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