1099-R for dependent

Forum|Forum|7 years ago
June 6, 2019
1 reply
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My mom lives with us and is my dependent. How do I enter a 1099-R for her?

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Hal_Al

Level 15

You do not report his/her income on your return. If it has to be reported at all, it goes on his own return. Your dependent must file a tax return for 2016 if he had any of the following:

1. Total income (wages, salaries, taxable scholarship etc.) of more than $6,300* (2016).

2. Unearned income (interest, dividends, capital gains, 1099-R) of more than $1050 (2016).

3. Unearned income over $350 and gross income of more than $1050

4. Household employee income (e.g. baby sitting, lawn mowing) over $2000

5. Other self employment income over $400, including box 7 of a 1099-MISC

6. Gross income was at least $5 and his spouse files a separate return and itemizes deductions

*If her 1099-R plus any other income, except social security, is more than $4050; she cannot be your dependent.

Hal_Al

Level 15

A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:
1. Closely Related OR live with the taxpayer ALL year
2. His/her gross taxable income for the year must be less than $4,050 (2016)
3. The taxpayer must have provided more than 1/2 his support
4. He must be a US citizen or resident of the US, Canada or Mexico
5. He must not file a joint return with his spouse or be claiming a dependent of his own
6. He must not be the qualifying child of another taxpayer

Social security doesn't count as income, for the income test, but social security money he/she spends on her self does count as support not provided by you, for the support test. Money she puts into savings & investment does not count as support she spent on herself. Note that a parent is closely related so there is no requirement that she live with you at any time, during the year. But if you provided a home it helps your support case, unless they own the home you live in. If no one person (or married couple) provides 50% of the support (for example your siblings are also sending support), then a "multiple support agreement” (IRS Form 2120) can be used, to allow you to claim the dependent. <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f2120.pdf">https://www.irs.gov/pub/irs-pdf/f2120.pdf</a>
The IRS has a worksheet that can be used to help with the support calculation. See: <a rel="nofollow" target="_blank" href="http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf">http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf</a> The support value of a home is the fair market rental value, divided by the number of occupants.