Discussion:Dependent Gross Income Test
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Revision as of 23:09, 10 April 2009
Discussion Forum Index --> Tax Questions --> Dependent Gross Income Test
| 23 February 2007 | |
| I have a 79 year old client who has been filing head of household with his 85 year old lifetime companion as a dependent. I understand this is legitimate if she meets the gross income test, but last year she made $26,271 in tax exempt interest (and $9 taxable interest and $23 dividends). Does this still meet the requirements? My reading suggests it does, but it seems to me it is a technicality. | |
Tfortaxes@msn.com (talk|edits) said: | 23 February 2007 |
| First of all the lifetime companion does NOT make him head of household. Check out Pub 17, page 23, table 2-1 for who qualifies. Second. The client may be able to claim the companion as a dependant an still get the 3300.00 exemption but he must prove support. Pub 17, page 32 for the worksheet. The client must provide more than 50% of the amount required to support the companion. I think you have a snowballs chance at a bon fire to actually pull this one off! | |
| 24 February 2007 | |
| WayneCPA, this might have worked under the old law. However, an unrelated dependent is not a a head of household qualifier under the new rules. | |
| 10 April 2009 | |
| Just got asked by my office manager as she was printing returns. For years client has claimed his elderly parent on return as a dependent. There was never any income before other than Social Security. She is 68 this year and she also had a $3,800 distribution from the Teamsters <yes, I know, don't mess with them>.
The $3,800 distribution prevents her from being a dependent this year, and disregarding the support test. It looks like the IRS definition of Gross Income does not include Social Security. So, if mother only receives Social Security of $18,000, it is ok to claim her as long as support test is met? | |
Pink Pearl (talk|edits) said: | 10 April 2009 |
| I think if mom banks the 18K each year its probably ok...support can be shown. | |
| 10 April 2009 | |
| I guess my main question was is Social Security exempt from the $3,500 gross income calculation? | |
Rgtaxservice (talk|edits) said: | 10 April 2009 |
| Non taxable Social Security is not included in the $3500 test. It is included in the Support Test though, unless she banks alot of it. | |
