If they use the Social Security benefits they receive to provide over one-half of their own support then you will not be able to claim them as a dependent.
To be a Qualifying Relative -
1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross income for the year must be less than $4,400 (social security does not count) in 2022
4. You must provide more than half of the person's total support for the year.
5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.
6. The person must not file a joint return with their spouse.
Q. Can you claim an adult child as a dependent if they receive a monthly SSI payment?
A. Yes. non taxable Social security Disability Income (SSDI) or Supplemental security Income (SSI) do not count as income for the $4400 annual income test.
But social security or SSI 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 child 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. The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.
Furthermore, there are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
- He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
- He did not provide more than 1/2 his own support. n
- He lived with the parent (including temporary absences such as away at school) for more than half the year
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