Can no longer claim son as dependent right?

[naggie1972]

Was 19 in May, does not go to school and works pretty much full time. Still lives at home.

[gavinsnana]

Not unless he enrolls in college.. But you guys do have to continue his health coverage I think until 22? or 24..

[Deleted]

Based on what you say he is no longer a qualifying child, but if you provide more than 50% of his support he could be a qualifying relative. Take a look at the IRS publication for qualifying relative (I think there is a gross income qualifier).

[naggie1972]

oh thanks, I try to have every thing under control but this one totally passed me by. I will take a look at the qualifying relative but I think his income will be too high.

[naggie1972]

Yeah we are also very confused about this health insurance too. I used to think I had a brain and be able to figure this stuff out but....


Gross Income – The dependent earns less than the personal exemption amount during the year. For 2009 and 2010, this means the dependent earns less than $3,650.

Yeah he made more than this, I think I might be having an oh poop moment when I do the taxes..

Now that I am thinking about it, it kind of sucks because he certainly couldn't afford to live on his own on his pay, he eats our food still, uses out utilities etc...

[mwcpa]

the rules related to this matter can be found at IRS.gov

www.irs.gov/publications/p501/index.html

I quote some items from the publication...

"There are four tests that must be met for a person to be your qualifying relative."

Not a qualifying child test, - "Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. He may be your qualifying relative if the gross income test and the support test are met. "



Member of household or relationship test, "Live with you all year as a member of your household"

Gross income test, "To meet this test, a person's gross income for the year must be less than $3,700. Gross income defined. Gross income is all income in the form of money, property, and services that is not exempt from tax."

Support test. "To meet this test, you generally must provide more than half of a person's total support during the calendar year."

Based on the 4 tests, it seems to me on first glance, assuming "works pretty much full time" means he makes more than 3,700.00 and is not a student, the dependency exemption belongs to the child and not the parent.

[naggie1972]

Yep.

[mwcpa]

We have had a lot of questions here recently about "dependents" and "head of household" status, I know the rules can be confusing.

I guess with many children staying at home longer (and in some cases returning home) and parents coming to live with children (later in life) due to the poor economy and other issues I can see why..... incomes are dropping for many, yet costs continue to rise.....

[activeonlooker]

If, for some reason, he was still in high school in 2011 (ie: graduated in June 2011), he should still qualify as your dependant assuming all other tests are met. To be a "student", he only needed to be a student for 5 months of the year.

[Deleted]

Jan 4, 2012 20:29:23 GMT -5 @naggie1972 said:

Yeah we are also very confused about this health insurance too. I used to think I had a brain and be able to figure this stuff out but....


Gross Income – The dependent earns less than the personal exemption amount during the year. For 2009 and 2010, this means the dependent earns less than $3,650.

Yeah he made more than this, I think I might be having an oh poop moment when I do the taxes..

Now that I am thinking about it, it kind of sucks because he certainly couldn't afford to live on his own on his pay, he eats our food still, uses out utilities etc...

You need to be charging him room & board (at least board).

If his income is rather low, he may qualify for EIC. Make sure you have discussions NOW about the dependent exemption that you are losing & that if he gets a refund you would expect a portion of that to replace your lost deduction in light of the support you provided over the past year.

For health insurance you can keep them on until they are 26 (unless they have insurance through their job):
"The Affordable Care Act requires plans and issuers that offer dependent coverage to make the coverage available until a child reaches the age of 26. Both married and unmarried children qualify for this coverage. This rule applies to all plans in the individual market and to new employer plans. It also applies to existing employer plans unless the adult child has another offer of employer-based coverage (such as through his or her job). Beginning in 2014, children up to age 26 can stay on their parent’s employer plan even if they have another offer of coverage through an employer."

[mwcpa]

Rock It..... EIC may not be available for a 19 y/o....

from irs.gov, to qualify for EIC one must "be age 25 but under 65 at the end of the year " (unless one has a child, amongst other test) www.irs.gov/taxtopics/tc601.html

[naggie1972]

Yah, was not thinking of that. I think we are gonna owe. We get 120 from him. I think this year is the last year DD can be used too, aarrrrgghhh. Down to married and 2.....UCK.


* You were not at least age 25 but under age 65 at the end of 2011