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Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 28084
Experience:  Personal Investment, Tax Preparation
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Taxpayer claimed s disabled 42-year-old son as dependent and

Customer Question

Taxpayer claimed his disabled 42-year-old son as dependent and claimed EIC in his 2013 ITR. Taxpayer fully supported his son in the entire year of 2013 in spite of his disabled son receiving a retroactive benefit from Social Security Administration in
November, 2013 in the amount of $50,000.00. He also claimed his disabled half-sister which he supported. The Half-sister did not receive any SS benefit because she had no green card or being a U.S. citizen. Because the half-sister stayed for more than ten
years here in the U.S. and has valid social security number, Taxpayer believes that he can claim the half sister as his dependent and claim the EIC. Taxpayer believed that his half-sister intent to stay permanently here in the U.S. can be construed as a permanent
resident on the basis that Homeland Security (INS) may differ with the IRS in this special situation.
Submitted: 1 year ago.
Category: Finance
Expert:  Lev replied 1 year ago.

Hi and welcome to our site!

You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative.

For qualifications - see page 12 -

http://www.irs.gov/pub/irs-pdf/p501.pdf
Based on your information

- disabled 42-year-old son is taxpayer's qualifying child., and

- his disabled half-sister may be either his qualifying child or qualifying relative depending on requirements.

Tests To Be a Qualifying Child

1.The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

2.The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled.

3.The child must have lived with you for more than half of the year.

4.The child must not have provided more than half of his or her own support for the year.

5.The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

Tests To Be a Qualifying Relative

1.The person cannot be your qualifying child or the qualifying child of any other taxpayer.

2.The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you, or (b) must live with you all year as a member of your household (and your relationship must not violate local law).

3.The person's gross income for the year must be less than $3,950. ($4000 for 2015)

4.You must provide more than half of the person's total support for the year.

Customer: replied 1 year ago.
I know that they are qualifying son and half-sister from reading Pub 17. Kindly answer my questions if taxpayer can claim his son who received the $50K from SSA in November of 2013 but used it in 2014. As far as the sister, is green card or US citizenship important to disqualify her as "qualifying person" who does not have an income. Is her status to stay in US without green card or U.S. citizenship plays a role.My apology that I cannot accept your answer. I have read Publication 17.
Expert:  Lev replied 1 year ago.

if taxpayer can claim his son who received the $50K from SSA in November of 2013 but used it in 2014.

A.
As we already discussed - disabled son is a qualifying child regardless of his age.

Tests To Be a Qualifying Child are following:

1.The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

2.The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled.

3.The child must have lived with you for more than half of the year.

4.The child must not have provided more than half of his or her own support for the year.

5.The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

As we see - there is NO gross income test - but there is a support test - the child must not have provided more than half of his or her own support for the year.

So as long as that test is satisfied - the taxpayer may claim the son as a dependent regardless of son's income.

Expert:  Lev replied 1 year ago.

is green card or US citizenship important to disqualify her as "qualifying person" who does not have an income.

A.

You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident
of Canada or Mexico.

For tax purposes - residency is determined either based on green card test or substantial presence test.

Please do not confuse with residency requirements for immigration purposes.

You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States on at least:

1.31 days during the current year, and

2.183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:

-- All the days you were present in the current year, and

-- 1/3 of the days you were present in the first year before the current year, and

-- 1/6 of the days you were present in the second year before the current year.

So far - based on your information - a half-sister is a resident alien for tax purposes regardless of not having a green card or US citizenship - and may be a qualifying relative.

Customer: replied 1 year ago.
My sincere apology in late reply.With due respect in your profession, I partly accept your answers except that you could have avoided listing all given tests for me to read Taxpayer’s entitled for son’s dependency and claiming EIC.
You answer is not directed to the question I asked but, instead you listed all tests of QUALIFYING CHILD.
My main question is the Taxpayer entitled to claim his son as dependent although the son received Social Security income of $50,000 SS INCOME (unearned)? If the answer is yes, may the Taxpayer claim the son and EIC?Taxpayer also claimed his half-sister for being disabled and without income. IRS wanted the Taxpayer to produce the green can or passport. Taxpayer’s mother was abducted in 2014 (most probably). IRS insisted that the Taxpayer produces dependent sister’s passport or green card. There are documents concerning medical document, etc.. IRS still disallowed dependency and EIC. The physically present in the U.S. is denied by IRS.
Expert:  Lev replied 1 year ago.

My main question is the Taxpayer entitled to claim his son as dependent although the son received Social Security income of $50,000 SS INCOME (unearned)?
A.
Sorry for confusion.
If we look into Tests To Be a Qualifying Child - we see - there is NO gross income test - so the fact of having income by the dependent will NOT affect qualification.
There is a support test - the child must not have provided more than half of his or her own support for the year.

So as long as that test is satisfied - the taxpayer may claim the son as a dependent regardless of son's income.
There are special worksheet to determine the support test if needed.
But income received by the son is NOT relevant and will not affect determination.

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