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Learn how the support test decides child support

On Behalf of | Dec 27, 2021 | Child Support |

Residents of Libertyville and other nearby areas of Illinois will want to learn more about the determination of someone who qualifies as your dependent. These dependents may be a qualifying relative or a child. This determination is for the purpose of taxes and is one of several criteria.

According to The Balance, tax breaks are possible if you have one or more children or dependents. You may no longer deduct an exact dollar amount, however.

IRS determines support test

Under this rule, you have to provide more than 50% of their support to qualify as your dependent. If you have your mother or father living with you, and they provide 65% of their own support, they are not your dependent.

You must have qualifying income

The income you use for support must come from one of the following sources:

  • Job income
  • Tax-exempt income
  • Payments you make to a nursing home
  • Funds from Temporary Assistance for Needy Families (TANF) you use for support
  • Armed Forces dependency allotments

You cannot claim payments to you from a child placement agency. This is money paid as support for a foster child. If your child spends money you gave them to support themselves, you cannot claim this income. Social Security benefits that your child uses to support themselves cannot be claimed as income.

What can you consider towards support?

The following will receive consideration as expenses toward support of your dependent:

  • Food
  • Clothing
  • Education
  • Utilities
  • Home repairs
  • Out-of-pocket medical and dental bills
  • Travel and recreation

What happens when there is divorce?

If the child’s parents are going through divorce, and one parent has the right to claim the child as a dependent, that parent can transfer the right to the other parent. This is through the utilization of IRS Form 8332.7.

Claiming a dependent on your tax return may just mean checking a box. However, there are things to know regarding what qualifies as support.

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