Discussion:Dependency exemption and credits for a child with survivor benefits
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Revision as of 06:34, 24 January 2008
Discussion Forum Index --> Basic Tax Questions --> Dependency exemption and credits for a child with survivor benefits
Discussion Forum Index --> Tax Questions --> Dependency exemption and credits for a child with survivor benefits
| 24 January 2008 | |
| A client showed up claiming a household of herself and her 10-year-old child. She has both wages ($14,000) and SS Survivor Benefits ($10,000). The child has SS Survivor Benefits as well ($10,000), all of which went into the household budget. She wanted to claim the dependency exemption, dependent care credit, and EIC for the child. Should the survivor benefits be calculated as the child's own funds available for his own support (which would disallow the dependency exemption and dependent care credit because of the support test), or are they considered as "third party" payments like SSI? They wanted to use the "third party" payment approach but I wasn't comfortable with that. I showed her the Pub 17, but she insisted that it had been done that way in previous years. Am I missing something here? I found some other threads that came close to this but I didn't see anything that addressed the "third party" payment issue. | |
