Can I claim my 24 year old disabled child who receives SSI as a dependent?

[zinsco]

Thank you @Hal_Al, I found someone saying basically the same thing here: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2890740-my-adult-son-receives-ssi-in-determining-if-he-qualifies-a...>

I wish someone had an official source from the IRS to quote on this, but it's sounding to me like it's a bit of a grey area.  Does anyone have an official documented source on this?

[zinsco]

Also, as @Opus 17 posted ( <a rel="nofollow" target="_blank" href="http://www.stepnowskilaw.com/DependentExemption.html">http://www.stepnowskilaw.com/DependentExemptio...> ) it would seem the courts have not decided.  The article said, "even if the court could rule whether the Social Security benefits could be treated as support he supplied, an issue the court did not decide." Basically, it was a moot point because the mother had payed more than 50% anyway.

[Opus 17]

I agree it seems to be a gray area, or a case-by-case area.

 If the child pays $360 as "fair share", what is the other $500 spent on?

If the SSA determined that $360 is support "she pays" and the rest is not, maybe that is good enough for the IRS.  Then you only need to show that his actual living expenses are more than $721.  

You may still want to go through the entire pub 501 worksheet, it may make this all a moot point.

[zinsco]

The $500 goes to her car payment and online college tuition.

[Hal_Al]

That "someone saying basically the same thing"  was just Me again. So, that doesn't count as confirmation.

[zinsco]

hahaha, I see that.  How funny

[zinsco]

@Opus 17 @Hal_Al It actually does seem awfully clear in <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p501.pdf">https://www.irs.gov/pub/irs-pdf/p501.pdf</a> page 20 where it says, "Support provided by the state (welfare, food benefits, housing, etc.). Benefits provided by the state to a needy person generally are considered support provided by the state."

That combined with what it say on page 15, "Support Test (To Be a Qualifying Child) To meet this test, the child can't have provided more than half of his or her own support for the year."  It says, "the child can't have provided, not the state.

What am I missing here @Opus 17 ?

Thank you both, you guys have been so helpful.

[Opus 17]

That's where I was headed at first until I read that law site.  And the IRS says the same thing at the very bottom of this chart (which I think is a copy from somewhere else) <a rel="nofollow" target="_blank" href="https://apps.irs.gov/app/vita/content/globalmedia/table_2_dependency_exemption_relative_4012.pdf">ht...>

That being the case, I don't know why the law firm linked above thinks differently.  I would probably change my answer to @Hal_Al 's, unless someone can find a more authoritative statement.

[Hal_Al]

I think the confusion comes from the fact that SSI is administered by the Social Security Administration. So some people think that is not the same as "State" welfare.

[zinsco]

Hmmm, does it matter that "Support provided by the state (welfare, food benefits, housing, etc.). (Benefits provided by the state to a needy person generally are considered support provided by the state.) is found under the heading for Support Test (To Be a Qualifying Relative) and not under the heading Support Test (To Be a Qualifying Child)?  Because, doesn't she have to be a Qualified Child since she is disabled and not a Qualified Relative?

[Opus 17]

No, it's just pointing you to the location of the full definition.

[zinsco]

One last question and dare I even ask this one but.....

What difference does it really make, except for maybe a technicality, if she supports herself or the state supports her?  In either case, it's not me providing the support. @Hal_Al @Opus 17

[Hal_Al]

It makes a big difference because the support rule is different for a Qualifying Child (QC) vs. a QualifyingRelative (QR).
For a QC  the key question is: is she supporting herself. For a QR the key question is: are you (the taxpayer who wants to claim her) supporting her. Since you have established that you do not provide more than half her support, she cannot be your QR. So now we look at can she be your QC. And that depends on whether she provides more than half her own support and that depends on whether that SSI is her money or state (third party) money.

[Opus 17]

It has to do with the way the two different kind of dependents are defined.  

For a qualifying child, the child can't provide more than half of their own support.  It doesn't matter who does provide support (welfare, custodial parent, non-custodial parent, etc.) because residency is more important here.  If the child supports themself (child actor, etc) they are not a dependent.  Otherwise, your own  child who lives with you is your dependent no matter who pays the bills.  

For a qualifying relative, you must pay more than half the costs, no matter who pays the other half.  That means the child can't support themself but is also means that you can't claim a dependent when someone else pays the support.  

Qualifying relative is less-used and less understood.  It applies to people like adult children who have aged out of being a qualifying child, and it applies to the children of your boy or girlfriend who live with you but you aren't married or their legal stepparent.  

You personally have to support a qualifying relative dependent.  But you can claim your own child as a qualifying child dependent as long as they live with you, even if someone else pays their expenses, and as long as they don't support themselves.  

It's just the way the law is written.

[zinsco]

You people are so smart