Adult dependent unearned income

[ehorsfield]

I claimed my 50 year old son in 2020 as a dependent as I provided over 50% of support, he lives with me, and his income from selling some mutual funds was $3,902.  He filed also due to the sale of the mutual funds and indicated he was a dependent on someone else's return.   He does not work.  In 2021 he had a incident of mental illness and sold a number of his mutual funds so his AGI is over $20,000.  Can I still claim him as a dependent? I know he must file himself but since I provided 50% of his living expenses and paid his health insurance I wondered if I could still claim him and just have him indicate he is a dependent on someone else's return.  Does his unearned income level of over $20,000 disqualify him to be my dependent?  Where should his 1095-A information be entered?  On his form or mine as I paid his health premiums? 

[GeorgeM777]

As long as you can prove that you provided more than half of the support for your dependent son, you can still claim him as a dependent.  In terms of support, it does not matter how much your son earned.  If you provided more than half of his support, regardless of your son's income amount, then you can claim your son as a dependent.  

Given the income your son earned, he will need to file a return and will indicate that he can be claimed as a dependent on your return.  His standard deduction may likely be impacted by the fact that you can claim him as a dependent, but TurboTax will calculate the amount of your son's standard deduction. 

Because it appears your son was on a Marketplace plan, received a 1095-A, and will be filing his own return, have him include the 1095-A on his return.  If you are using TurboTax online, you can use the search tool and enter the term 1095-a in the search bar.  Click on the jump-to link that will take you to the page where you can enter your son's health insurance information. 

@ehorsfield

[Mike9241]

his agi is too high for you to claim him as a dependent.

as a matter of fact his gross income can't be over $4300.

there is no exception for disability

since the 1095A is under his SSN it goes on his return.