How to do taxes now that my disabled son has turned 18 and receives social security?

[Mamagraham1]

We have a son who is disabled and turned 18 this year.  Because of that he also started getting social security because of his disability.  I am very unsure what I need to do about our taxes this next year to make sure I do things correctly with claiming him and whatever else I need to do.  Please advise!!!!

[xmasbaby0]

You do not enter your son's Social Security disability income on your own tax return.   If your son has a job or any OTHER income he might need to file a tax return of his own, but if the SS is his only income he does not need to file a tax return.   You can still claim him as a dependent.    He can still be claimed as your qualified child until the tax year when he turns 19.  If he is a full-time student he can be your qualifed child until the tax year when he turns 24.   Or if he is totally  and permenantly disabled he can be your qualified child with no age limit.   Or  he can be your qualified relative dependent even if he is receiving Social Security.   If he has other income (more than $4400) then you would not be able to claim him, but the SS does not count.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2020 taxes as long as they meet the following requirements:

Qualifying child

•They are related to you.

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

•They are not filing a joint return with their spouse.

•They are under the age of 19 (or 24 for full-time students).

• No age limit for permanently and totally disabled children

  •      They live with you for more than half the year (exceptions apply).

Qualifying relative

•They don't have to be related to you (despite the name).

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

•They are not filing a joint return with their spouse.

•They lived with you the entire year.

•They made less than $4300  (not counting Social Security)

•You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.

Related Information:

•Does a dependent have to live with me?

•What does "financially support another person" mean?

•Can I claim a newborn baby?

[Hal_Al]

@xmasbaby0  You appear to have left off the support test  on the list of Qualifying Child Rules:

•     They did not provide more than 1/2 their own support. 

Nontaxable Social security doesn't count as income, for the income test, but social security money he spends on himself does count as support provided by the potential dependent,  for the support test.  Money he puts into savings & investment does not count as support he spent on himself. 

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of the home, provided by the taxpayer,  is the fair market rental value, divided by the number of occupants.

There are two types of dependents, "Qualifying Children"(QC) and standard ("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 (or disability) status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit. 

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative is that the taxpayer provided more than half the relative's support.

[xmasbaby0]

@Hal_Al Thanks for adding that!

[Mamagraham1]

Thank you for all the feedback, I appreciate it.  So since he does not provide half of his own support and is still 18 do I just do my taxes like normal and claim him as a dependent?

[xmasbaby0]

Yes file normally and claim your teenager as your dependent.   Do NOT enter his Social Security on your own tax return.

[macuser_22]

The IRS defines disabled this way:

Permanent and total disability.

You have a permanent and total disability if you can't engage in any substantial gainful activity because of your physical or mental condition. A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.
Substantial gainful activity.

Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity.

Claiming disabled has no tax benefit unless child care was necessary so that you could work that normally cuts off after age 12, but is allowed if the care is necessary for an older disabled child.

It also allows claiming a Qualified Child as a dependent beyond the age of 18 and would do nothing for a younger child.

[Mamagraham1]

Thank you for all the info, it is so helpful!!!  One more question.  Being that he is on Social Security, he pays us Room and Board.  Does that just get entered as income for us or is there a special way to do that?

Thank you!

[xmasbaby0]

Family cost sharing is not entered on a tax return.  

[Mamagraham1]

This isn't considered rental income?

[xmasbaby0]

This your teenage son that you are talking about.   Unless you have some sort of written rental agreement or lease with your 18 year old child, this is not rental income,  it is family cost sharing.

[Mamagraham1]

We do have a simple room and board agreement that we had to have to submit so that he could receive his full SSI payment.  Not sure if that makes a difference or not.

[xmasbaby0]

Then guess you do have rental income to enter on your own tax return.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-income-and-expenses-from-...

[croscoe]

The IRS provides this interview to help determine whether you can treat your son as a dependent:

Whom may I claim as a dependent? - Oracle Web Determinations (irs.gov)

[1914gd]

I was receiving earned income credit, but my grandson who lives with me is totally disabled and turned 18, and he is still in school. No form is showing up that allows me to enter the information so it's not allowing me to get the EIC