My grandmother has social security income of $7,800 a year. It's her only income so it's tax exempt for her and she normally does not file a tax return. My Dad provides more than 50% of her support. But does she meet the income test for being claimed as a dependent since her income is all exempt?
2007-03-22 03:14:12 · 10 answers · asked by ramencurls 1 in Business & Finance ➔ Taxes ➔ United States
Her social security would not be counted toward the gross income test, although it would be counted when determining who provides what portion of her support.
And she doesn't have to live with your dad to be claimed as a dependent - or to qualify him to file as head of household, it he meets the other requirements.
2007-03-22 10:55:41 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
He can claim his mother if she has less than $3,300 in gross income (excluding tax exempt Social Security) and if he provides more that half of her support.
She does NOT need to live with him for him to claim her as his dependent. She is among the group of direct relatives who are exempt from the residency requirements of a "Qualifying Relative" for dependency status.
There is no "income test" that requires her to have any taxable income to be claimed as a dependent. I'm not sure where you heard that.
2007-03-22 10:29:51 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Your Dad may be able to claim Head of Household if your Grandmother lives with him. Even if her income is tax-exempt, she should still be filing unless she is going to be claimed as a dependent on your father's return. To truly claim her, she would have to reside with him and he would have to note her income on his return. There are several issues that really require a CPA or other tax professional to help you and your Dad determine what is really appropriate regarding the tax situation.
Good luck!
2007-03-22 10:24:43 · answer #3 · answered by AuntLala 3 · 0⤊ 3⤋
Yes. As long as he provides for more than 50% of her living expenses, he can claim her as a dependant.
2007-03-22 10:21:15 · answer #4 · answered by Blicka 4 · 0⤊ 0⤋
No,
I consulted with a tax agent from the Internal revenue service on the same issue for my mother and they told me the only way I could claim her as a dependent is if she was deemed to be in my custody but I would need to list her SS as part of my income.
2007-03-22 10:36:43 · answer #5 · answered by ThePleasurePlayground.com 2 · 0⤊ 2⤋
Since your Dad is providing over 50% of her support, I'd say she's a dependent. It doesn't matter whether or not the other $7,800 she gets is taxable or not.
Of course, you or your father should consult the IRS to be sure.
2007-03-22 10:20:13 · answer #6 · answered by blueshoe711 4 · 0⤊ 2⤋
she would be considered a dependent on his income tax forms, I would check into it with the IRS before I made the claim though... don't think it is a problem, but better to KNOW!
2007-03-22 10:27:37 · answer #7 · answered by Charles V 4 · 0⤊ 1⤋
If she has lived with your dad all the tax year, and she does not have a job or income of hter own, and she is basically a dependent of your dad's, then yes, he can claim her.
2007-03-22 10:23:29 · answer #8 · answered by alis volat propriis 4 · 0⤊ 3⤋
YES. Emphatically, YES!
2007-03-22 12:11:31 · answer #9 · answered by bold4bs 4 · 0⤊ 0⤋
i would say yes, if she lives with him more than 6 months out of the year and supports her more than 50% then i would say yes.
2007-03-22 10:18:13 · answer #10 · answered by Latintweety 3 · 1⤊ 3⤋