One Half Support rules for year of immigration to US

[GayleS03]

What are the rules for determining 1/2 support for this situation?  An individual immigrated to the US (green card) on 7/28/24 from a country with a much different economic model.. she supported herself in her home country (prior to 7/28/24) but will be supported 100% by her son in the US.  (Very complicated to compare costs because of the currency and cost structure differences.)  Can you legitimately break it down as a monthly test and determine that her son did NOT provide 1/2 support for 2024? (That would be the better outcome in this case, btw.) Please share whatever references you have so I can retain it in the tax backup. Thank you!

[LoriLeighEA]

Thanks for joining us today, GayleS03!

For US tax purposes, a dependent is someone "other than the taxpayer or spouse" who qualifies to be claimed by someone else on a tax return. They rely on another person for financial support. This includes children or other relatives. There are two types of dependents, each subject to different rules:

• Qualifying Child
• Qualifying Relative

The following questions must be answered to determine if you can claim your relative:

• Are they a citizen or resident? The person must be a U.S. citizen, a U.S. national, U.S. resident, or a resident of Canada or Mexico. 
• Are you the only person claiming them as a dependent? You can't claim someone who is claimed as a dependent on another tax return. You also can't claim a person who states that they are not able to be claimed as a dependent on their own tax return (takes a personal exemption for himself). Finally, a dependent cannot claim another person as a dependent on their own tax form. 
• Are they filing a joint return? You can't claim someone who's married and files a joint tax return. 

For a parent to be claimed:

• Do they live with you? Your relative must live with you all year as a member of your household or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
• Do they make less than $4,700 in 2023 ($5,050 for 2024)? Your relative can't have a gross income of more than $4,700 in 2023 and be claimed by you as a dependent. This threshold increases to $5,050 for 2024. Certain income is excluded from this requirement such as all or part of Social Security benefits.
• Do you financially support them? You must provide more than half of your relative's total support for the year.For more details click here: Rules for Claiming Dependents on Taxes

[GayleS03]

Thank you for the initial response. I am seeking greater clarity on the 1/2 support math for this scenario with two different countries, currencies, cost structures and government subsidies for things like health care, utilities and food. If the question is beyond the scope here, please let me know. 

[LoriLeighEA]

You are very welcome, GayleS03.

Yes, the additional calculations and variables is beyond the scope here. We do not do calculations or projections. There are some excellent IRS publications that may give you more clarity. 

Here is an example: For Caregivers

[pk]

@GayleS03  the  requirement for "more than 50% support",  is generally interpreted as  more than 50% of the usual  & necessary  living  expenses of the person in question. 

Since you became a resident   ---  this would be  the day you were admitted  into the USA as a Resident  ( assuming that you had not been in the USA  ( for  any reason ) during the last two years    (  2021 and 2022 )..

So I would count your expenses  only from the  day you were admitted in to the USA.   Prior to that date  you were not a US person ( and for US purposes did not exist ).

That is my opinion .

Is there more I can do for you ?

[GayleS03]

A sincere thank you for the response. Ironically, the best outcome for this family is if they can substantiate there is NOT 1/2 support. That part about not existing for US tax purposes before arriving.... where would I look for a reference on that? It doesn't seem illogical, but I haven't seen anything that expresses precisely that; also, I  believe that if this person happened to have US sourced income prior to the date of arrival, that income would go on that 2024 tax return and that seems contrary to the theme of not existing prior to arrival... Arghh, I'm going circular on this.  I really do appreciate you understanding the core initial question and sending your view....  just because I don't like the outcome doesn't mean it's wrong, as they say.... 

[pk]

@GayleS03 

(a)  I  believe that if this person happened to have US sourced income prior to the date of arrival, that income would go on that 2024 tax return   ------   yes that US sourced income would be taxable per the tax treaty  ( generally US and the other country both would tax it  --- US as Non- Resident Alien.

(b)  Whereas I cannot quote a statute that calls out the "non-existence" of a person --  ( NRA) for US tax purposes when the  person does not have US sourced income  Nor    physically present in the USA, t  he general  US tax  laws are   based on US Person ( citizen/ GreenCard / Resident for Tax purposes ) and a specific  rules  for Non-US Persons and  ONLY on US sourced income.    Thus  my logic that in counting  the  living expenses  of  persons  only living at the tax home of the person claiming the dependent.    This is strengthened  in dis allowance in general for  a US Person  whom  pays for the living expenses of a person living in another country i.e. for a Non-US Person ( specific exemption for  resident of Canada and Mexico.

Does this make sense ?

pk

[GayleS03]

Yes, I follow. Thanks for the additional texture on the reasoning... in this case it's a parent who isn't required to "live with" the taxpayer, but I don't think that in itself overcomes your argument...  Again, thanks for going deep with me on this... it's what I was wishing for on this....