Disabled Adult Child Receiving SSI

[GraceNY]

I'm tired and really wrestling with filing status and dependent exemption issues which involve a retired taxpayer whose daughter lives with her. She owns her own home and pays more than the requisite "more than half the cost of keeping up the home" for head of household purposes. Her daughter, who is in her 40's, is collecting approximately $1,100/mo on SSI due to her being disabled for mental health reasons.

(1) Is there a difference between SSI and SSDI? Sometime ago (could be confusing old rules), I recall reading that SSI was a form of welfare and therefore considered provided by a third party, not provided by the child. Whereas SSDI was considered the child's money and counts as money used for their support.

(2) The support test is different for QC as opposed to QR. For QC, the child can be any age as long as totally and permanently disabled and the support test is met as long as the child did not provide more than half their own support. So if SSI is third-party provided, then child would not have means to provide more than 50% of their own support. Whereas with a QR, the taxpayer (retired mother) would have to provide more than 50% of the person's total support. And, that may not be the case if SSI is considered third party support. In either case, the support test is at issue here and that's why I wanted to know if there was a distinction between SSI and SSDI?

(3)If the taxpayer (retired mother) is able to claim disabled daughter as either a QC or a QR, then she can file HOH as long as she meets those HOH requirements? For some reason, I keep thinking that a QR does not qualify you to use HOH.

(4)Lastly, does any one know if by claiming this disabled child puts their SSI benefits at risk?

Thanks in advance for any input on this.

Grace

[jainen]

>>collecting approximately $1,100/mo on SSI<<

SSI is proof of permanent disability and is a needs-based program similar to welfare which is considered 3rd-party support. That makes the 40-year-old a Qualifying Child even if the mother does not support her.

SSDI is part of the same insurance program that pays retirement benefits based on work history. A qualifying relative is good for HoH, except in the special case of an unrelated person who is a QR for dependency under the old member-of-household test.