Qualifying dependents for Taxes
I have a 1 year old grandson that I want to claim as a dependent. His mother has Medical and Snap benefits with the state of IL. I pay for everything else. Can I claim my grandson without effecting their Benefits?
Terry Says
Here’s a definition of a dependent from TurboTax:
For tax purposes, a dependent is someone “other than the taxpayer or spouse” who qualifies to be claimed by someone else on a tax return. More generally speaking, a dependent is someone who relies on another person for financial support, such as for housing, food, clothing, necessities, and more. Typically, this includes your children or other relatives, but it can also include people who aren’t directly related to you, such as a domestic partner.
Generally speaking, if you provide more than 50% of the person’s support, you can claim them as a dependent.
BUT, claiming your grandson means his mother would lose her state benefits. This is tricky, because she could also be giving up the child tax credit that she is eligible to claim, besides those Medicaid and SNAP benefits.
For the 2022 tax year, the Child Tax Credit is worth $2,000 per qualifying dependent child if your modified adjusted gross income is $400,000 or below (married filing jointly) or $200,000 or below (all other filers). But the maximum credit for a child as a dependent is $500. And you may not be able to claim the child tax credit based on your income!
I suggest getting tax advice from a professional to see what tradeoffs are involved. But likely your daughter is better off claiming the child and getting all the benefits for which she qualifies.
