joanmcq Posted March 4, 2008 Report Share Posted March 4, 2008 I used to have a support worksheet, to help in determining if you provided more than 50% of a person's support. I remember giving it to a client that was trying to determine if he could take his parents as dependents. I just cruised through the instructions to the 1040 and couldn't find it. Does anyone know if its still there, or have such an animal. It listed different kinds of support & expenses. Also, do loans count as support? I think they do, but I am so fried right now... Quote Link to comment Share on other sites More sharing options...
Lloyd Hudson Posted March 4, 2008 Report Share Posted March 4, 2008 I used to have a support worksheet, to help in determining if you provided more than 50% of a person's support. I remember giving it to a client that was trying to determine if he could take his parents as dependents. I just cruised through the instructions to the 1040 and couldn't find it. Does anyone know if its still there, or have such an animal. It listed different kinds of support & expenses. Also, do loans count as support? I think they do, but I am so fried right now...chap 3 pg 32 to determine qualifying relative. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 4, 2008 Author Report Share Posted March 4, 2008 Of the IRS instructions? I see only the standard deduction worksheet for dependents on page 32. Quote Link to comment Share on other sites More sharing options...
Maribeth Posted March 4, 2008 Report Share Posted March 4, 2008 Of the IRS instructions? I see only the standard deduction worksheet for dependents on page 32. CFS Tax Tools has a great little support worksheet; also dependency flowcharts. Maribeth Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 4, 2008 Author Report Share Posted March 4, 2008 Thank you!!! I have tax tools at my office...and I've never explored all of its benefits. Guess I'll take the files into work... Quote Link to comment Share on other sites More sharing options...
jainen Posted March 4, 2008 Report Share Posted March 4, 2008 >>Of the IRS instructions?<< The Dependency Support Worksheet is on page 32 of Pub 17, not the 1040 instructions. I posted the citation yesterday, with a short discussion in Pat's thread "Dependant Worksheet." The Tax Tools version adds automatic calculation, although putting a computer screen between you and your client makes an intimate interview about personal expenses and family composition rather awkward. Quote Link to comment Share on other sites More sharing options...
SCL Posted March 4, 2008 Report Share Posted March 4, 2008 joanmcq - you suggest parents as dep, but i think you are asking the 'bull in the china shop' question - college students as dep (loans?). b kammen (hi b - come on down) used to argue that the irs can not care whether a student contributes over half of his own support (loans) and is therefore not a dep of parent. then the parent looses exemption, college tuition deds/credits and whatever else. the student gets no benefit of anything since there is no tax liability. i have read that the technical solution is for loans to be in parents name and the student a cosigner. parents don't want to do this cause the kid can/will stick the parent with the loan repayment. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 6, 2008 Author Report Share Posted March 6, 2008 The client I am researching are neither; RDPs with one working and the other going to school. The working partner is supporting the student, but the student took out $30000 in loans to pay tuition, books and transportation expenses. The working partner is paying most of everything else; all of the household expenses. But I ran a quick calculation in Tax Tools with the info I had, and it doesn't seem to work for them. However, the Tax Tools calculates half of the household expenses as support provided by the student for the student...even though the student didn't pay them. Quote Link to comment Share on other sites More sharing options...
SCL Posted March 6, 2008 Report Share Posted March 6, 2008 jmcq - oh, it is a california dom partner quest. out here in the heartland, i have no idea what you are talking about. the ia leg recently tried for a constitutional amendment to ban such things - it failed. may the force be with you. Quote Link to comment Share on other sites More sharing options...
jainen Posted March 6, 2008 Report Share Posted March 6, 2008 >>i have no idea what you are talking about<< We are talking about numbers, SCL, NUMBERS. Although there are other factors in dependency, this thread is only about support. Thank you, joancmq, for demonstrating that flashy automatic calculations hide and distort the way the numbers flow. TaxTools doesn't really allocate "half of the household expenses as support provided by the student." It just says on Line 20 (I trust my older version has the same lines) that the student uses half of the household expenses as part of the total cost of support. Down on Line 20 is where you put in the amount actually paid by the student. TaxTools allows you to separate income that is saved rather than used for support, but you have to scroll or get back to the top and highlight/key new figures, and it doesn't prompt you for loans or previously saved money that is also spent. On paper you can make little lists and notes and subtotals so you don't forget the individual pieces while you try different combinations. Quote Link to comment Share on other sites More sharing options...
SCL Posted March 6, 2008 Report Share Posted March 6, 2008 jainen - fair enough. it very well is a support (NUMBERS) question - jmcq knows how to do that. i saw cal dom partner and glazed over. in fact i am still glazing. nevertheless, do you have an opinion about my mistaken diversion? - students with loans (and NUMBERS) as dep of parents and all the consequences that follow. Quote Link to comment Share on other sites More sharing options...
Edward Posted March 7, 2008 Report Share Posted March 7, 2008 For joanmcq: PPC's 1040 Deskbook (Quick Reference Binder) has an excellent Worksheet for "Dependents Support Test for a Qualifying Relative". If you don't have the PPC pub send me your fax number and I'll send you a copy. Edward Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.