• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Dependen Son Disabled?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

evetsgd

Junior Member
What is the name of your state? CA
Taxpayer has son (24) diagnosed as bipolar /chemical addition/personality disorder during 2006. Son entered rehab 9/30/06 and remained till end of year. From 1/1/07 to present, in structured sober living home with continuing therapy. Scheduled to stay all of 2007. Parents paid for rehab ($100K) and sober living home costs. Son lived with parents 6 months in 2006 and 3 months in rehab. Parents provided more than 95%of support. Son had 3 jobs earning $4000. Lost jobs due to mental condition. Taxpayer has letter from doctor stating the condition will last more than one year. Son is only capable of the most menial jobs and will lose one after another. However son will probably work again in 2007 as therapy. Does this meet the disabled test?What is the name of your state?
 


LdiJ

Senior Member
What is the name of your state? CA
Taxpayer has son (24) diagnosed as bipolar /chemical addition/personality disorder during 2006. Son entered rehab 9/30/06 and remained till end of year. From 1/1/07 to present, in structured sober living home with continuing therapy. Scheduled to stay all of 2007. Parents paid for rehab ($100K) and sober living home costs. Son lived with parents 6 months in 2006 and 3 months in rehab. Parents provided more than 95%of support. Son had 3 jobs earning $4000. Lost jobs due to mental condition. Taxpayer has letter from doctor stating the condition will last more than one year. Son is only capable of the most menial jobs and will lose one after another. However son will probably work again in 2007 as therapy. Does this meet the disabled test?What is the name of your state?
Technically, the rules are that to be considered as disabled, the adult child must be collecting disability. However, there certainly seems to be enough documentation of the disability and of the parent's support of the adult child to overcome that.

I think that this one needs some case law research, by a tax professional. The issue of the exemption itself is not worth all that much money if the parents have sufficient resources to have covered 100k in medical costs, however the deductiblity of the medical costs could be quite significant, and the parents cannot deduct those if the adult child is not their dependent.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top