@Hal_Al social security income only becomes taxable when you add it to other income. The question is how much other income would then qualify social security as taxable income? It appears that the total of the elderly couple’s social security income added up, and divided by 2, + all the other income like interest income or dividend income, has to be greater than $32,000 a year together. It’s not that difficult to have social security greater than $32,000 a year for two people.
So if an elderly couple makes more than $32,000 a year for both, from social security, then they can or cannot be claimed as a dependent? Without going through the worksheet, I’d guess $32,000 in social security would be greater than $4700 gross income. However, the income test is only for one dependent, not two people (as a couple). But the $32,000 rule is looking at their income as two people (as a couple). Not sure I follow the logic.
@xmasbaby0 it appears that your statement that social security doesn’t “count” when you’re being claimed as a qualifying relative dependent isn’t true. You have to use that worksheet to see how much of that $10k social security money is taxable. @DoninGA Your post of $4700 excluding social security is incorrect based on what @Hal_Al is saying.
