Senior citizen mother with adult son dependent

#8 12-31-2004, 02:49 PM

thanks that is what I was thinking

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#7 12-29-2004, 01:50 PM

jtc wrote:
- quote -

> "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
> > "jtc" <jtamchay[at]yahoo.com> wrote:

> > > Mother is 88 and lives independently; she has income and
> > > social security. Son is 62 and retired in 2003 with no
> > > health insurance; he has in excess of 25,000 in medical
> > > bills which mother paid for during 2004; bills were paid
> > > directly to the physicians etc.
> > > > > Son lives on his social security (1200.00 month); at his
> > > daughter's home where he pays 500.00 monthly rent. He
> > > recently divorced and has 40,000 income from equity in sale
> > > of home.

If he meets the tests of IRC Section 121 (made the home his
primary residence for 2 of the 5 years ending on the sale
date; owned the home for 2 of those 5 years), he may have no
reportable income from that sale. If his SSI is his only
other income it will likely be tax free.

- quote -

> > > Son has been advised that he will not need to file on his
> > > own if he is mother's dependent.

Advised by who? Dependency status is NOT a criterion for
being required to file. Having gross income equal to or
greater than the personal exemption + standard deduction
amount is the test.

- quote -

> > > Does this sound about right?

> > No. He might not have to file, but it isn't because he is a
> > dependent.

> would you care to explain further..........he lives in
> Illinois and mother lives in Minnesota; he has no income
> except for social security...retired early at 62. he now is
> divorced (12/13/2004) and will have the shared equity from
> sale of home which is non taxable. Ex-wife is declaring the
> taxes and interest from year 2004...they would file
> separately if he needs to. thanks

If the divorce was final on December 13, filing with his
ex-wife is not an option. If he has to file, it will be as
an unmarried taxpayer.

Regards,
Bill

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#6 12-28-2004, 07:02 PM

- quote -

> > > Son has been advised that he will not need to file on his
> > > own if he is mother's dependent.
> > > > > Does this sound about right?

> > No. He might not have to file, but it isn't because he is a
> > dependent.

> would you care to explain further...

He doesn't have to file because he doesn't have enough
income, NOT because he's a dependent. Many dependents have
to file a return.

Phil Marti
Clarksburg, MD

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#5 12-23-2004, 04:06 AM

"David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
- quote -

> "jtc" <jtamchay[at]yahoo.com> wrote:

> > Mother is 88 and lives independently; she has income and
> > social security. Son is 62 and retired in 2003 with no
> > health insurance; he has in excess of 25,000 in medical
> > bills which mother paid for during 2004; bills were paid
> > directly to the physicians etc.
> > > Son lives on his social security (1200.00 month); at his
> > daughter's home where he pays 500.00 monthly rent. He
> > recently divorced and has 40,000 income from equity in sale
> > of home.
> > > Son has been advised that he will not need to file on his
> > own if he is mother's dependent.
> > > Does this sound about right?

> No. He might not have to file, but it isn't because he is a
> dependent.

would you care to explain further..........he lives in
Illinois and mother lives in Minnesota; he has no income
except for social security...retired early at 62. he now is
divorced (12/13/2004) and will have the shared equity from
sale of home which is non taxable. Ex-wife is declaring the
taxes and interest from year 2004...they would file
separately if he needs to. thanks

--
jtc

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#4 12-22-2004, 03:28 PM

<smithff33[at]aol.com> wrote:

- quote -

> If his income is greater than $3,100 there is NO WAY he can
> be anybody's dependent. However, if mom pays MORE than 50%
> of his total support for the year, she can claim the medical
> expenses as an itemized deduction on her Schedule A.

please take a look at Mr. Marti's answer, above

--
jtc

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#3 12-22-2004, 03:28 PM

"Phil Marti" <philmarti[at]aol.com> wrote:
- quote -

> "jtc" <jtamchay[at]yahoo.com> writes:

> > Mother is 88 and lives independently; she has income and
> > social security. Son is 62 and retired in 2003 with no
> > health insurance; he has in excess of 25,000 in medical
> > bills which mother paid for during 2004; bills were paid
> > directly to the physicians etc.
> > > Son lives on his social security (1200.00 month); at his
> > daughter's home where he pays 500.00 monthly rent. He
> > recently divorced and has 40,000 income from equity in sale
> > of home.
> > > Son has been advised that he will not need to file on his
> > own if he is mother's dependent.
> > > Does this sound about right?

> You were doing fine until the last sentence. You don't make
> it clear whether the $40,000 is taxable or not. If it is,
> he cannot be his mother's dependent, but she can deduct the
> medical expenses she paid since she provided more than half
> his support (apparently). If the $40,000 is tax-exempt
> (Publication 523), he has no filing requirement and his
> gross income is low enought that Mom can claim him as a
> dependent.

40,000 is not taxable...so my first thinking is going to
work...thanks

--
jtc

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#2 12-22-2004, 02:50 PM

"jtc" <jtamchay[at]yahoo.com> wrote:

- quote -

> Mother is 88 and lives independently; she has income and
> social security. Son is 62 and retired in 2003 with no
> health insurance; he has in excess of 25,000 in medical
> bills which mother paid for during 2004; bills were paid
> directly to the physicians etc.
> Son lives on his social security (1200.00 month); at his
> daughter's home where he pays 500.00 monthly rent. He
> recently divorced and has 40,000 income from equity in sale
> of home.
> Son has been advised that he will not need to file on his
> own if he is mother's dependent.
> Does this sound about right?

No. He might not have to file, but it isn't because he is a
dependent.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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#1 12-21-2004, 12:45 AM

If his income is greater than $3,100 there is NO WAY he can
be anybody's dependent. However, if mom pays MORE than 50%
of his total support for the year, she can claim the medical
expenses as an itemized deduction on her Schedule A.

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12-21-2004, 12:26 AM

"jtc" <jtamchay[at]yahoo.com> writes:

- quote -

> Mother is 88 and lives independently; she has income and
> social security. Son is 62 and retired in 2003 with no
> health insurance; he has in excess of 25,000 in medical
> bills which mother paid for during 2004; bills were paid
> directly to the physicians etc.
> Son lives on his social security (1200.00 month); at his
> daughter's home where he pays 500.00 monthly rent. He
> recently divorced and has 40,000 income from equity in sale
> of home.
> Son has been advised that he will not need to file on his
> own if he is mother's dependent.
> Does this sound about right?

You were doing fine until the last sentence. You don't make
it clear whether the $40,000 is taxable or not. If it is,
he cannot be his mother's dependent, but she can deduct the
medical expenses she paid since she provided more than half
his support (apparently). If the $40,000 is tax-exempt
(Publication 523), he has no filing requirement and his
gross income is low enought that Mom can claim him as a
dependent.

Phil Marti
Clarksburg, MD

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#-1 12-20-2004, 10:45 AM

Mother is 88 and lives independently; she has income and
social security. Son is 62 and retired in 2003 with no
health insurance; he has in excess of 25,000 in medical
bills which mother paid for during 2004; bills were paid
directly to the physicians etc.

Son lives on his social security (1200.00 month); at his
daughter's home where he pays 500.00 monthly rent. He
recently divorced and has 40,000 income from equity in sale
of home.

Son has been advised that he will not need to file on his
own if he is mother's dependent.

Does this sound about right?

thanks

--
jtc

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