Tax payer has a child that is handicapped. 30 years old and makes approx. $20,000.00. Parent provides over half of childs support and child lives with him. Child is unable to live on their own.
Parent wants to take child for a dependent.
Is the child "permanently and totally disabled" per the IRS?
As mojo said, check the rules carefully. Can the child dress and feel him/her self and do toileting functions without assistance? There's a lot to look at with this issue.
The IRS stated that both of these must apply.
1 child cannot engage in any substantial gainful activity because of a physical condition
2. Doctors have determined the condition will last continously for life.
Both of these apply even though the individual is not totally disabled.
I will be telling the client that the child does not qualify as a dependent.
I believe that is the correct call. (I assumed the child. I have a client with the same situation.)
GENERALLY AGREE WITH pamac--there is an exception if the employment is through a special workshop-if disabled should be receiving SS or disability-that's the iron clad for IRS questions regarding disability
if indeed disabled-may rule out the dependency option-but not neccessarily other tax benefits normally available with a disabled child -it can get confusing-I have a client with that situation-I think every permutation possible has been run over the years
Thanks
the child makes the income and parents are over 100 th
