Question: The client’s son is age 25 and lives at home with his parents. His only source of income is $14,000 of Supplemental Security Income (SSI). The son uses the SSI to chip in on household expenses and otherwise support himself. The parents provide all other support for their son. Can the parents claim the son as a dependent on their tax return?
Answer: Maybe. There are three tests for being a qualifying relative. One: the individual must have a qualifying relationship, or have lived in the taxpayer’s home for every day of the year. A son is a qualifying relationship. This test is met. Two: the individual’s gross income cannot exceed $4,300 (2020 and 2021). None of the SSI will generate gross income. This test is met. Third: the parents must have provided more than 50% of their son’s support. This test may or may not be met because the $14,000 of SSI does count as support provided by the son. The parents will need to determine what the son’s overall support was for the tax year. If the son’s overall support is $28,000 or less, the test is not met because the son will have provided 50% or more of his own support and not the parents. If on the other hand, the son’s overall support is greater than $28,000, the parents will have provided more than 50% of the son’s support and the test would be met.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.