Claiming a 45 years old son

[Pacun]

How much is the maximum my son can make in order for me to claim him as a dependent if he lived with me the whole year in 2017 and I paid 75% of his support?

 

[Hahn1040]

$4,050

[Pacun]

Thank you. It is one standard deduction now that I recall correctly.

[Pacun]

How about a son with a 1099-misc of $4,100 with 0 expenses, can he be claimed a s dependent if parents supported him 75% and is 45 years old, not incapacitated?

[Hahn1040]

 

from Pub 17 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

4.Support test

.

      Age.

Unlike a qualifying child, a qualifying relative can be any age. There is no age test for a qualifying relative.   

           Gross Income Test

To meet this test, a person's gross income for the year must be less than $4,050.

Gross income defined.

Gross income is all income in the form of money, property, and services that isn't exempt from tax.

In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business.

 Gross receipts from rental property are gross income. Don’t deduct taxes, repairs, or other expenses to determine the gross income

 

OF course all of this changes for 2018 when there are no more exemptions....Has anyone seen what they will use starting in 2018?

 

[Pacun]

I guess it is not adjusted income, therefore the $4,100 will be the amount to be considered. Thank you for your help.

Yes, I also wonder what it will be next year but I will find out in May, after tax season.

 

[Lee B]

Question:  In 2018 with no more exemptions, will a child going to college at least half time and working, with the parents providing more than 50 % support, 

being a dependent for other purposes be able to claim the single standard deduction of $ 12,xxx ?

[ILLMAS]

“Claiming a 45 years old son”

Not that I am 45, but I just wanted to make it wasn’t my parents asking about me 

[grandmabee]

2018 it won't matter for a 45 dependent.  no exemption deduction.

[JimTaxes]

would the $ 500 new tax credit come into play if all other tests are met?

 

[SaraEA]

Puzzling that the new W4 has exemptions on it.  The formula is wild--if you have a child eligible for the CTC you add 4 to the exemption line.  With the old W4, if a single person w/ no children followed the math they ended up with two or three exemptions.  I have a childless client who donates a lot to charity and thus deducts a sizeable amount on Sch A.  Following the formula told him to claim 17 exemptions.  I can't imagine what the result is on the new one.  Now that everyone's withholding has been reduced, I have lots of clients sending me paystubs to calculate if their new withholding amounts will be enough.  I don't have time for this, but I realize they need to know before it's too late to do something about it.  There is no way to get a sense of it either.  I have clients making $200k whose tax bill will go down by almost $5k, another with the same income will pay $2500 less; an older client with $16k taxable income will see her tax rise $300.  Either the projection software or the law (or both) is just as confused as I am.

[Lee B]

They are not exemptions. They are "Allowances" 

After skimming thru the Instructions, I suspect that most taxpayers will just put down the the number of exemptions they previously claimed in 2017.

This so called "Allowance" point system is so convoluted that this might become a new revenue stream for accountants.

[ILLMAS]

I prepare payroll for clients and there is this particular one that has two employees with the same salary, one person claimed zero allowances and the other has like six and person with the six allowances takes more home.  Now that the new W4 and calculator is out which is complicated for a non tax person, I am going to give them the new W4 and they can figure it out for themselves.

https://apps.irs.gov/app/withholdingcalculator/