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Question for the Money Doctors

Question submitted on Apr 13, 2014.

Question

HELP! 2 part question. I'm on disability, own a home but my son lives with me, cares for me and gets paid for it by the State of IL. He always files and claims me but can never use the property tax write off. Since I make about the same money he does can I file and claim him and my house taxes too?

Answer

1. You can't cross claim one another. So, no, you can't claim your son as a "relative"

2. If you pay your property taxes, you can claim as an itemized deduction on your tax return.

Analysis and Resources:

In order for your son to claim you as a dependent, you must meet the four pronged relative test:

"

Qualifying Relative

Four tests must be met for a person to be your qualifying relative. The four tests are:

  1. Not a qualifying child test,
  2. Member of household or relationship test,
  3. Gross income test, and

To meet this test, a person's gross income for the year must be less than $3,900

4. .Support test.....

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

The following IRS Publication gives more details on the ability to qualify as a relative for dependency exemptions."

http://www.irs.gov/publications/p17/ch03.html#en_US_2013_publink1000170967

There are some special rules for disabled dependents who get income in certain circumstances.

Disabled dependent working at sheltered workshop. For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. The availability of medical care at the workshop must be the main reason for the individual's presence there. Also, the income must come solely from activities at the workshop that are incident to this medical care.A “sheltered workshop” is a school that:

  • Provides special instruction or training designed to alleviate the disability of the individual, and
  • Is operated by certain tax-exempt organizations, or by a state, a U.S. possession, a political subdivision of a state or possession, the United States, or the District of Columbia.

For additional information visit http://www.360financialliteracy.org/