I'm trying to determine if I could claim my partner as a dependent and have a question about line 1 on the IRS worksheet which states:
Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. Don't include funds provided by the state; include those amounts on line 23 instead
The answers to your questions are shown below. I've also included the rules for a Qualifying Relative, which must all be met to claim another person who may or may not be related to you.
Qualifying Relative:
You provided more than half of their support.
They made less than $4,050 in gross taxable income. (Social Security income generally doesn’t count here.)
They live with you (365 days in the year) or they are related to you.
They aren’t a dependent on someone else’s taxes.
They aren’t doing their taxes with a spouse (married filing jointly).
They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
You can’t claim a dependent if you are a dependent on someone else’s taxes. Use the link here for more information. Rules for Claiming a Dependent on Your Tax Return
The answers to your questions are shown below. I've also included the rules for a Qualifying Relative, which must all be met to claim another person who may or may not be related to you.
Qualifying Relative:
You provided more than half of their support.
They made less than $4,050 in gross taxable income. (Social Security income generally doesn’t count here.)
They live with you (365 days in the year) or they are related to you.
They aren’t a dependent on someone else’s taxes.
They aren’t doing their taxes with a spouse (married filing jointly).
They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
You can’t claim a dependent if you are a dependent on someone else’s taxes. Use the link here for more information. Rules for Claiming a Dependent on Your Tax Return
Thank you for the clarification! I've been getting split answers regarding #1 and I was wondering if providing more detail would change anything:
I was recently informed that since he's not a qualifying child on my return (or anyone else's), I would have to account for ALL of his grants/scholarships regardless. I was initially told that I only have to account for the excess after paying qualifying education expenses, which would count as his income -- Do you know which is true? I'm so lost...
I really appreciate your help and guidance. Taxes are so confusing and the more I ask, the more there is to consider/research but I just want to make sure I file them correctly.
@Question Please see the updated information in 1. above. The grants will be included when determining support because this is not your child. Also, to be clear, this person does not qualify to be a child on your tax return, which is why I added the Qualifying Relative rules.
Thanks that makes sense!
So would I treat all of his grants the same and report the entire amount under line 1 on the IRS worksheet for determining support? I think the part that confused me also about this was the "funds provided by state" as part of the financial aid he received from submitting FAFSA was the "state need grant" and I'm not exactly sure what that should be treated as.
@Question Yes, but remember to enter the education expenses as part of the support costs as well.