Claiming a dependant who has only Social Security benefits?

[joeblack322]

California.

I received a letter from the FTB of CA stating that my "qualifying person's gross income exceeds the allowable amount for the tax year in question" for the year 2008.

I claimed only my father(since he was on SSI and Social Security) and myself, and filed as HOH(Head of Household). His only source of income is from Social Security benefits(income from Social Security is non-taxable). All of these years the FTB has had no problems with me using my father as a dependent for HOH. I pay more than half of the expenses required for us to live together for the year.

I looked up some information on the internet, and came across an answer to my question, but I would like some verification to whether it is accurate or not.

"If you have a parent living with you all year, and they are receiving Social Security benefits, but they do not work can, you claim them as a dependent on your taxes?"

Parents would fall under the category of "qualifying relatives" under the new rules for claiming a dependent. Under these rules, you can claim your parents as dependents if they each earn less than $3,200 in taxable income and you provide more than half of their total financial support. If their only source of income is Social Security, then none of their Social Security benefits are taxable, and they would have zero taxable income. In that situation and you provided over half of their financial support, then yes you can claim your parents as dependents. (And they don't have to live with you either, since there's no residency requirement for parents.)

Source:
Tax Question of the Day: More Questions about Claiming Dependents

Is this information accurate? Do I just include this information in the protest letter I send back, or do I need to include other documents or proof?

I would appreciate any further information anyone can give me.

Thank you,

Joe Black

 

[LdiJ]

California.

I received a letter from the FTB of CA stating that my "qualifying person's gross income exceeds the allowable amount for the tax year in question" for the year 2008.

I claimed only my father(since he was on SSI and Social Security) and myself, and filed as HOH(Head of Household). His only source of income is from Social Security benefits(income from Social Security is non-taxable). All of these years the FTB has had no problems with me using my father as a dependent for HOH. I pay more than half of the expenses required for us to live together for the year.

I looked up some information on the internet, and came across an answer to my question, but I would like some verification to whether it is accurate or not.

"If you have a parent living with you all year, and they are receiving Social Security benefits, but they do not work can, you claim them as a dependent on your taxes?"

Parents would fall under the category of "qualifying relatives" under the new rules for claiming a dependent. Under these rules, you can claim your parents as dependents if they each earn less than $3,200 in taxable income and you provide more than half of their total financial support. If their only source of income is Social Security, then none of their Social Security benefits are taxable, and they would have zero taxable income. In that situation and you provided over half of their financial support, then yes you can claim your parents as dependents. (And they don't have to live with you either, since there's no residency requirement for parents.)

Source:
Tax Question of the Day: More Questions about Claiming Dependents

Is this information accurate? Do I just include this information in the protest letter I send back, or do I need to include other documents or proof?

I would appreciate any further information anyone can give me.

Thank you,

Joe Black

On a federal level, it really depends a great deal on who owns the house you are living in, how much money you make, and how much social security your parent receives.

Example: If you own the house, make 70k a year and your father has 12k in social security it would probably fly.

Example: If your dad owns the house, has 22k in SS benefits and you make 35k a year, its probably NOT going to fly.

California however, does things their own way...and often their way is not similar to other states. Therefore you need to consult with a local tax professional.

 

[joeblack322]

Tax Info.

Thank You it was a big help.