Support test- disabled adult child

Technical topics regarding tax preparation.
#1
taxcpa  
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Client has an adult child, disabled with Autism. The child lives with the client.

I am working with them to complete the support test calculation, to ensure they are a qualifying child. The first iteration would indicate they are, as almost all of the child's income from SSD and wages is placed into an ABLE account, and not used for support. They do not receive SSI. The parents provide all living expenses.

I am somewhat confused, however, by the fact that the child participates in a day program operated by a non profit. Much of the cost of operating the program is provided by the State, through their disabilities administration. None of the child's living expenses are provided through this program.

How do I view this program and its associated cost? Is it considered support? I would think it clearly would be if it involved housing and other basic living expenses, but this does not do that.
 

#2
CathysTaxes  
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I wouldn't count it as support. Think of it as a continuation of the adult child's education
Cathy
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#3
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If paid by the state, it is not support provided by the child.
 

#4
taxcpa  
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Clearly its not support provided by the child. What I am wondering is whether the cost should be included in costs for the person supported- see the worksheet, line 18, as well as the amount provided by others on line 23.

I like Cathy's thinking. My research (so far) has produced very little in specifics as to what expenses are to be considered aside from the obvious things like housing, food, clothing, etc.
 

#5
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But if the child is disabled and meets all other qualifications for qualifying child, you are only concerned if he provided over half of his own support. Support provided by the state is not considered support provided by the child.
 

#6
CathysTaxes  
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I wish I could find the court case. On Tax Almanac, another poster shared a court case concerning a single mother who claimed her adult disabled son who received SSI, a day program and medicaid. She claimed HoH, the exemption and EIC. IRS said no claiming the medicaid and day program was son's support. She self prepared her return and represented herself. She won the case.
Cathy
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#7
taxcpa  
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Yellowdog wrote:But if the child is disabled and meets all other qualifications for qualifying child, you are only concerned if he provided over half of his own support. Support provided by the state is not considered support provided by the child.


And that very correct point got the fuzz out of my head on this subject.

Thanks.
 


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