Can You Claim Someone on Disability as a Dependent?

Understanding tax implications is critical for individuals seeking to maximize financial benefits. A common question is whether someone on disability can be claimed as a dependent, which could lead to tax savings. This issue is particularly relevant for families and caregivers supporting disabled individuals.

Relationship, Support, and Residency Criteria

To claim someone on disability as a dependent, the IRS provides specific guidelines for qualifying relatives or children. A qualifying relative must be related to the taxpayer, such as a sibling or parent, or live with the taxpayer all year as part of the household.

The taxpayer must provide more than half of the dependent’s total support, which includes expenses like food, housing, and medical care. For instance, if a taxpayer spends $15,000 annually on a dependent’s living expenses and the dependent’s total support needs are $25,000, the taxpayer meets the requirement. Keeping detailed records of these expenses is essential for IRS verification.

The dependent must live with the taxpayer for more than half the year. Temporary absences, such as hospital stays or school attendance, do not count against this requirement, ensuring the dependent is genuinely part of the household.

Disability Benefits and Claiming a Dependent

Disability benefits are generally not taxable, but claiming someone receiving these benefits as a dependent depends on meeting broader IRS criteria, such as financial support and household residency. Disability status alone is insufficient for dependency claims.

Claiming a dependent on disability can result in tax relief through credits like the Child Tax Credit or the Credit for Other Dependents, which offers up to $500 per qualifying dependent as of 2024. Eligibility depends on income thresholds and other IRS rules, requiring careful planning and documentation.

Taxpayers should also consider how claiming a dependent might impact the dependent’s benefits. For instance, Supplemental Security Income (SSI) is a needs-based program, and changes in household income or resources could affect the dependent’s eligibility or benefit amount.

Disqualifiers for Claiming a Dependent

Certain factors can disqualify a taxpayer from claiming a dependent. A key disqualifier is the dependent’s income. For 2024, if a potential dependent earns more than $4,700 in gross income, they typically cannot be claimed unless they qualify as a child.

Age is another factor. While there is no age limit for a qualifying relative, a qualifying child must be under 19 at the end of the year or under 24 if a full-time student. This is relevant for taxpayers supporting young adults who may still be in school while receiving disability benefits. Marital status can also affect eligibility. If the dependent is married and files a joint tax return, they generally cannot be claimed unless the return is filed solely to claim a refund.