Special needs child

Hi, you can claim a 28 year-old  with special needs providing certain circumstance outlined below:

When your child reaches age 19, the rules change (for students, the rules change at age 24). You may still be able to deduct him as a dependent – provided that a few requirements are met. First, he must be permanently and totally disabled (if he is receiving Supplemental Security Income or Social Security Disability benefits he has been determined to be disabled).

Generally speaking, he must also live with you for at least half of the year (although there are a number of exceptions to that requirement), you must provide at least half of his support, and he cannot be claimed as a dependent on anyone else’s tax return.

These rules apply to your child, biological or adopted. They also apply to your stepchild, foster child, grandchild, brother, sister, niece, nephew or a descendent of any of those people.

There is actually another way your child can and certain other relatives may qualify as your dependent, and it does not require a finding of permanent and total disability. A “qualifying relative” can be a dependent even if he does not live with you (he has to be on a lengthy list of specific relatives, including children siblings, parents and many more), so long as you provide half of his support and he does not have income over $3,900 (in 2013 – this number will change each year).

The Internal Revenue Service has an excellent publication listing the finer details of claiming a child or other relative as a dependent. Look for Publication 501: Exemptions, Standard Deduction and Filing Information. It is updated annually.

Here is a link to Publication 501:

https://www.irs.gov/forms-pubs/about-publication-501

Hi reggiejackson44,

Please refer to IRS Pub 501, page 11, "Overview of the Rules for Claiming a Dependent.

https://www.irs.gov/pub/irs-pdf/p501.pdf 

Since your son is 28 years old, he can be a "qualifying child" if permanently and totally disabled, and did not provide more than half of his own support for the year. If no, please refer to "Tests to be a qualifying relative".

As for the timing for filing an amendment, "Generally, for a credit or refund, you must file Form 1040-X
within 3 years (including extensions) after the date you filed your
original return or within 2 years after the date you paid the tax,
whichever is later."

Page 3 of https://www.irs.gov/pub/irs-pdf/i1040x.pdf 

Hope this helps. Thank you.

Kochu Kitty

You can claim your child as a "qualifying child" dependent if they live in your home and is permanently disabled.  Disabled for tax purposes means "can't perform substantial gainful work."  Gainful work is employment for money.  Working in a sheltered workshop as occupational therapy is not considered gainful work even if he is paid, but working a minimum wage job at least part time will usually be considered the ability to perform gainful work.

You can claim your child as a "Qualifying relative" dependent if you pay more than half their support and they have less than $4500 of taxable income.  Taxable income does not include social security but could include investments in the child's name.  The child does not have to be disabled or live with you to be a "qualifying relative" dependent.

Each type of dependent is worth a $500 tax credit.  If your child lives in your home, and is disabled, and if you pay for care (day care) to watch your child so that you (and your spouse if married) can work, you can also claim the child and dependent care credit.

You can file amended returns for a refund for up to 3 years after the filing deadline.  Since the deadline for the 2019 tax season was extended to July 15, 2020, you have about 18 days to file an amended return for the 2019 tax season.  You have plenty of time to file amended returns for the 2020, 2021 and 2022 seasons. 

Hi,

The limit for tax year 2023 is $4,700.

In response to your question about retroactively claiming your special needs son as a dependent, you can amend your tax return three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later. 

A couple edits that I wanted to add are:

The income threshold was 4,400 for 2022 and $4,300 for 2021 and 2020.

In addition, here is an article below that pertains to your question:

https://www.irs.gov/forms-pubs/notice-2023-21-makes-more-taxpayers-eligible-for-a-credit-or-refund-if-they-timely-file-form-1040-x-to-amend-2019-and-2020-income-tax-returns#:~:text=For%202019%20income%20tax%20returns.&text=An%20affected%20taxpayer%20who%20filed%20their%202019%20return%20after%20July,date%20will%20be%20a%20Saturday 

I believe that the 3-year period is different based on what day in 2020 you filed your 2019 tax return.

Thank you,

John

CPA