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  1. #11
    Join Date
    Oct 2006

    Default Re: Grandparents Claiming Grandkids

    Quote Quoting Bubba Jimmy
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    llworking, the rules for a "Qualifying Child" are the same for a parent or a grandparent. I suggest you review IRS Pub. 17 regarding the definition of a Qualifying Child. Table 3-1 on page 26 of the 2008 Pub 17 lists the rules for Qualifying Child. The relationship can be "son, daughter, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them".

    Page 28 describes in detail what the support test is for a Qualifying Child. You should reveiw that as well and you will see that I am not wrong.

    Rather than just tell me I'm wrong, please give me an authoritive citation for what you are saying. For a qualifying child there is no requirement that the person claiming the exemption provide over 50% of the support, and if I am wrong please give me your source. This is something of which I am quite certain, and I am absolutely positive that I am not wrong. After reviewing Pub. 17 pages 26-29 I think it will be clearer for you.
    Actually, our firm paid for NATP to research it for us, because we felt it was as clear as mud...LOL.

    According to their research, there is no 50% rule as long as the party claiming the child is a parent...however even then, under the tiebreaker rules the two parents combined must provide more than 50% of the child's support.

    If there is a duplicate claim between a parent and a non-parent, the parent wins unless the non-parent can prove that they provided more than 50% of the child's support.

    I would agree with you that in the case of a child being the qualified child for two different people, (outside of support) they may elect who claims the child. An example of that would be a parent and grandparents sharing a household. However, if they do not agree, then the tiebreaker rules go into effect, and then then whoever provides 50% of the child's support IS a determining factor.

    And then of course there is the whole rule about the child not providing more than 50% of their own support.

    The bottom line for this OP however is the flexible spending account. The OP simply cannot agree to allow the grandparents to claim the child.

  2. #12
    Join Date
    Jul 2007

    Default Re: Grandparents Claiming Grandkids

    Actually, it is quite clear. There are four tests for a qualifying child in addition to the requirements for any dependent. This is very clear, and a fundamental to preparing a tax return. You are focusing on the parent relationship, and what I - and pub. 17 from the IRS - are telling you is that there is nothing different in this regard for a parent or an uncle or a grandparent. I believe you are bringing the tie-breaker rule into it rather than the tests for a qualifying child. But even in the tie-breaker rules, there is no rule that says the person claiming the child had to have provided over 50% of the support.

    Let me say it as clearly as I can. There is absolutely no rule requiring any taxpayer to provide one penny of support for a person who meets the definition of their "qualifying child" whether it is a parent, grandparent, or what ever. I've given you the IRS publication, citation, page number, etc. I'm not sure how to make it any clearer, but you seem to insist that I'm wrong. I believe your firm may not understand this issue, which is a very basic thing.

    You can insist that there is some mythical 50% rule as long as you like, but you are still going to have to give me an IRS citation. Just a hint, there is not one. But I'll have to eat crow if you find one. Even in the tie breaker rules, there is no 50% support rule. Those are in the same chapter of Pub. 17 I referred you to before. Did you read it?

    Tie Breakers:

    1. If only one person is the parent, they get the exemption.
    2. If both people are parents, it goes to the one the child lived with longer.
    3. If the child lived with both the same amount of time, the one with the higher AGI gets the exemption.
    4. If neither is the parent, then the person with the higher AGI gets the exemption.

    I've taught this stuff for over 20 years. I don't mean to be disagreeable, but I don't like being told "you're wrong" without someone giving me some authoritative source to show me where my mistake is.

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