Can I claim my 30 year old adult son as a dependent even though he got a w-2 for some temporary disability payments?

[chaplainkirkpatr]

I provided more than half of his support for the year, but if I claim him I can't seem to enter his W-2.

[DS30]

If your son is permanently disabled you will be able to claim him as a qualified child if the other remaining tests are met. (The disability qualification takes away the age limitation for the qualifying child dependent test.)

In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:

• Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
• Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
• Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
• Support — did not provide more than one-half of his/her own support for the year

You will not enter his W-2 on your tax form. Instead, he will (or you will if you are have the power of attorney for him) need to file a separate income tax return to report this W-2 income. This is only necessary if, his income is above the filing threshold (screenshot #1) or if he wants a full refund of any withholdings.

When preparing his separately filed return, he will need to make sure that he selects that he is being claimed on someone else's tax return (screenshot #2). If he fails to check this information, you will be denied the ability to take him as a dependent.

[wayne0000]

The blog that you wrote doesn't include screenshot #1 or screenshot #2, so I am confused.

Similarly, my son is intellectually disabled.  I am his conservator.  He was able to get a job in a disability program so in 2020 he made $2723.11 on his W-2.  He was also laid off during Covid, so he got a 1099G with Unemployment compensation of $2,018.  

I am claiming him as a dependent, but I couldn't see your screenshots for the filing threshold amounts, so I still don't know if I should file a separate return for him.

Any help is greatly appreciated.

Thank you.

wayne0000

[ErnieS0]

@wayne0000 You do not say how old your son is. He would be a "qualifying relative" rather than a "qualifying child" if he is outside of the age range mentioned (under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year).

The rules for a qualifying relative include an income limitation. You cannot claim a qualifying relative as a dependent if he or she made $4,300 or more in 2020. Your son made too much to be your dependent.

He would not be considered permanently and totally disabled for tax purposes if he had a job. This is what puts him in the qualifying relative category. The IRS considers a person permanently and totally disabled if:

1. He or she cannot engage in any substantial gainful activity because of a physical or mental condition, and
2. A doctor determines that the condition has lasted or can be expected to last continuously for at least a year or can lead to death.

You can double check using the IRS app Whom May I Claim as a Dependent?

[wayne0000]

Hi Ernie SO,

Thank you for your reply.  My son is 27.  He is permanently and totally disabled because of a mental condition (He has always had this intellectual disability and we have doctor's records that substantiate that it will last continuously for at least a year and probably for life).  He is in a special disability program at his employer, otherwise he wouldn't be able to get employment.  He can't engage in Substantial Gainful Activity as defined by SSDI of making over $13xx/ month.  He has been on SSI since he turned 22.  But now that I have started to collect Social Security they have switched him over to SSDI.  

Note: The IRS app was very confusing and nonsensical.  It asked if I and my spouse provided over half of my spouse's support.  Other questions weren't relevant or clear.  Do I include my spouse and myself in the family questions or not.  

[ErnieS0]

@wayne0000 Hi wayne0000 If your son is considered totally and permanently disabled, then he is back in the "qualifying child" category, meaning you can claim him as your dependent as long as you provide more than half his support.

A "qualifying child" does not have an income limit. You can claim a "qualifying child" regardless of how much he or she earns as long as you provide more than half the child's support.

See Qualifying Child.