Dependent child with own SS?

Forum|Forum|5 years ago
April 15, 2021
8 replies
25 views

Taxpayer gets $15000 on 1099-RRB, basically SS. Parent other income $8000. Husband deceased at 30. Three young children also get their own $15000 benefit each. Does parent qualify as HOH and children as dependents, thus eligible for EIC? ( due to the $8000)

ProSeries Professional

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Best answer by George4Tacks

Who supports the children? How do they spend their $15,000? What is the cost of maintaining the home? Where do the funds for this housing come from? So many questions....

https://apps.irs.gov/app/vita/content/globalmedia/4491_dependency_exemptions.pdf

https://apps.irs.gov/app/vita/content/globalmedia/head_of_household_qualifying_person_4012.pdf

George4TacksAnswer

Level 15

Who supports the children? How do they spend their $15,000? What is the cost of maintaining the home? Where do the funds for this housing come from? So many questions....

https://apps.irs.gov/app/vita/content/globalmedia/4491_dependency_exemptions.pdf

https://apps.irs.gov/app/vita/content/globalmedia/head_of_household_qualifying_person_4012.pdf

Answers are easy. Questions are hard!

C

ColmattAuthor

Level 5

I know, I know, I was clearly in denial of all human thought.......thanks for waking me up. Their money all pools together to support them as you can imagine. Clearly she is single with no dependents. As you can also imagine, the effect is negligible on her tiny return.

Let this tax season be over. I really appreciate the help you give us all in need.

T

TaxGuyBill

@Colmatt wrote:

I know, I know, I was clearly in denial of all human thought.......thanks for waking me up. Their money all pools together to support them as you can imagine. Clearly she is single with no dependents. As you can also imagine, the effect is negligible on her tiny return.

DON'T just assume that. ASK the client to about it. It is quite possible the children's money largely went into savings. It is quite possible that the children did NOT support themselves.

If the $8000 is Earned income (or there was Earned Income in 2019), the Additional Child Tax Credit could be quite large.

And if the $8000 is Earned income (or there was Earned Income in 2019), the taxpayer may qualify for EIC (even if the children don't qualify as dependents due to supporting themselves).

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