Support Test
Generally, you must provide more than half of a person's total support during the calendar year to meet the support test. However, there are
special rules that apply in the following two situations.
- Two or more persons provide support, but no one person provides more than half of a person's total support. See Multiple Support
Agreement, later.
- The person supported is the child of divorced or separated parents. See Support Test for Child of Divorced or Separated Parents,
later.
You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support
with the entire amount of support that person received from all sources. This includes support the person provided from his or her own funds.
You may find Table 3-1
Worksheet for Determining Support
Table 3-1. Worksheet for Determining Support
| Funds Belonging to the Person You Supported |
|
| 1) |
Total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year |
$ |
| 2) |
Amount used for support |
$ |
| 3) |
Amount used for other purposes |
$ |
| 4) |
Amount in savings and other accounts at the end of the year |
$ |
| (The total of lines 2, 3, and 4 should equal line 1) |
$ |
| Expenses for Entire Household (where the person you supported lived) |
|
| 5) |
Lodging (Complete item a or b) |
|
| |
a) |
Rent paid |
$ |
| |
b) |
If not rented, show fair rental value of home. If the person you supported owned the home, include the amount in line 19. |
$ |
| 6) |
Food |
$ |
| 7) |
Utilities (heat, light, water, etc. not included in line 5a or 5b) |
$ |
| 8) |
Repairs (not included in line 5a or 5b) |
$ |
| 9) |
Other. Do not include expenses of maintaining home, such as mortgage interest, real estate taxes, and insurance. |
$ |
| 10) |
Total household expenses (Add lines 5 through 9) |
$ |
| 11) |
Total number of persons who lived in household |
|
| Expenses for the Person You Supported |
|
| 12) |
Each person's part of household expenses (line 10 divided by line 11) |
$ |
| 13) |
Clothing |
$ |
| 14) |
Education |
$ |
| 15) |
Medical, dental |
$ |
| 16) |
Travel, recreation |
$ |
| 17) |
Other (specify) |
$ |
| 18) |
Total cost of support for the year (Add lines 12 through 17) |
$ |
| Did You Provide More Than Half? |
|
| 19) |
Amount the person provided for own support (line 2, plus line 5b if the person you supported owned the home) |
$ |
| 20) |
Amount others provided for the person's support. Include amounts provided by state, local, and other welfare societies or agencies. Do not include any amounts included on line 1. |
$ |
| 21) |
Amount you provided for the person's support (line 18 minus lines 19 and 20) |
$ |
| 22) |
50% of line 18 |
$ |
| Is line 21 more than line 22? Yes. You meet the support test for the person. If the other exemption tests are met, you may claim an exemption for the person. No. You do not meet the support test for the person. You cannot claim an exemption for the person unless you can do so under a multiple support agreement. See Multiple Support Agreement in this chapter. |
|
|
|
Person's own funds not used for support.
A person's own funds are not support unless they are actually spent for support.
Example.
Your mother received $2,400 in social security benefits and $300 in interest. She paid $2,000 for lodging and $400 for recreation.
Even though your mother received a total of $2,700, she spent only $2,400 for her own support. If you spent more than $2,400 for her support and no
other support was received, you have provided more than half of her support.
Child's wages used for own support.
You cannot include in your contribution to your child's support any support that is paid for by the child with the child's own wages, even if you
paid the wages.
Year support is provided.
The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year.
If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your
fiscal year begins.
Armed Forces dependency allotments.
The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring
whether you provide more than half of the support. If your allotment is used to support persons other than those you name, you can take the exemptions
for them if they otherwise qualify.
Example.
You are in the Armed Forces. You authorize an allotment for your widowed mother that she uses to support herself and your sister. If the allotment
provides more than half of their support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the
allotment only for your mother.
Tax-exempt military quarters allowances.
These allowances are treated the same way as dependency allotments in figuring support. The allotment of pay and the tax-exempt basic allowance for
quarters are both considered as provided by you for support.
Tax-exempt income.
In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. Tax-exempt income
includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions,
and tax-exempt interest.
Example 1.
You provide $4,000 toward your mother's support during the year. She has earned income of $600, nontaxable social security benefit payments of
$4,800, and tax-exempt interest of $200. She uses all these for her support. You cannot claim an exemption for your mother because the $4,000 you
provide is not more than half of her total support of $9,600.
Example 2.
Your daughter takes out a student loan of $2,500 and uses it to pay her college tuition. She is personally responsible for the loan. You provide
$2,000 toward her total support. You cannot claim an exemption for your daughter because you provide less than half of her support.
Social security benefit payments.
If a husband and wife each receive payments that are paid by one check made out to both of them, half of the total paid is considered to be for the
support of each spouse, unless they can show otherwise.
If a child receives social security benefits and uses them toward his or her own support, the payments are considered as provided by the child.
Support provided by the state (food stamps, housing, etc.).
Benefits provided by the state to a needy person generally are considered to be used for support. However, payments based on the needs of the
recipient will not be considered as used entirely for that person's support if it is shown that part of the payments were not used for that purpose.
Foster care payments and expenses.
Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. Similarly,
payments you receive for the support of a foster child from a state or county are considered support provided by the state or county.
If you are not in the trade or business of providing foster care to a child and your unreimbursed out-of-pocket expenses in caring for a foster
child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable
contributions, but are not considered support you provided. For more information about the deduction for charitable contributions, see Publication
526. If your unreimbursed expenses are not deductible as charitable contributions, they are considered support you provided.
If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you.
Home for the aged.
If you make a lump-sum advance payment to a home for the aged to take care of your relative for life and the payment is based on that person's life
expectancy, the amount of support you provide each year is the lump-sum payment divided by the relative's life expectancy. The amount of support you
provide also includes any other amounts that you provided during the year.
Figure 3-A. Can You Claim an Exemption for a Dependent?
Total Support
To figure if you provided more than half of the support of a person, you must first determine the total support provided for that person. Total
support includes amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar
necessities.
Generally, the amount of an item of support is the amount of the expense incurred in providing that item. For lodging, the amount of support is the
fair rental value of the lodging.
Expenses that are not directly related to any one member of a household, such as the cost of food for the household, must be divided among the
members of the household.
Example.
Your parents live with you, your spouse, and your two children in a house you own. The fair rental value of your parents' share of lodging is
$2,000 a year, which includes furnishings and utilities. Your father receives a nontaxable pension of $4,200, which he spends equally between your
mother and himself for items of support such as clothing, transportation, and recreation. Your total food expense for the household is $6,000. Your
heat and utility bills amount to $1,200. Your mother has hospital and medical expenses of $600, which you pay during the year. Figure your parents'
total support as follows:
| Support Provided |
Father |
Mother |
| Fair rental value of lodging |
$1,000 |
$1,000 |
| Pension spent for their support |
2,100 |
2,100 |
| Share of food (1/6 of $6,000) |
1,000 |
1,000 |
| Medical expenses for mother |
|
600 |
| Parents' total support |
$4,100 |
$4,700 |
You must apply the support test separately to each parent. You provide $2,000 ($1,000 lodging, $1,000 food) of your father's total support of
$4,100 - less than half. You provide $2,600 to your mother ($1,000 lodging, $1,000 food, $600 medical) - more than half of her total
support of $4,700. You meet the support test for your mother, but not your father. Heat and utility costs are included in the fair rental value of the
lodging, so these are not considered separately.
Lodging defined.
Lodging is the fair rental value of the room, apartment, or house in which the person lives. It includes a reasonable allowance for the use of
furniture and appliances and for heat and other utilities.
Fair rental value defined.
This is the amount you could reasonably expect to receive from a stranger for the same kind of lodging. It is used in place of rent or taxes,
interest, depreciation, paint, insurance, utilities, cost of furniture and appliances, etc. In some cases, fair rental value may be equal to the rent
paid.
If you provide the total lodging, the amount of support you provide is the fair rental value of the room the person uses, or a share of the fair
rental value of the entire dwelling if the person has use of your entire home. If you do not provide the total lodging, the total fair rental value
must be divided depending on how much of the total lodging you provide. If you provide only a part and the person supplies the rest, the fair rental
value must be divided between both of you according to the amount each provides.
Example.
Your parents live rent free in a house you own. It has a fair rental value of $5,400 a year furnished, which includes a fair rental value of $3,600
for the house and $1,800 for the furniture. This does not include heat and utilities. The house is completely furnished with furniture belonging to
your parents. You pay $600 for their utility bills. Utilities are not usually included in rent for houses in the area where your parents live.
Therefore, you consider the total fair rental value of the lodging to be $6,000 ($3,600 fair rental value of the unfurnished house, $1,800 allowance
for furnishings provided by your parents, and $600 cost of utilities) of which you are considered to provide $4,200 ($3,600 + $600).
Table 3-1. Worksheet for Determining Support
| Funds Belonging to the Person You Supported |
|
| 1) |
Total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year |
$ |
| 2) |
Amount used for support |
$ |
| 3) |
Amount used for other purposes |
$ |
| 4) |
Amount in savings and other accounts at the end of the year |
$ |
| (The total of lines 2, 3, and 4 should equal line 1) |
$ |
| Expenses for Entire Household (where the person you supported lived) |
|
| 5) |
Lodging (Complete item a or b) |
|
| |
a) |
Rent paid |
$ |
| |
b) |
If not rented, show fair rental value of home. If the person you supported owned the home, include the amount in line 19. |
$ |
| 6) |
Food |
$ |
| 7) |
Utilities (heat, light, water, etc. not included in line 5a or 5b) |
$ |
| 8) |
Repairs (not included in line 5a or 5b) |
$ |
| 9) |
Other. Do not include expenses of maintaining home, such as mortgage interest, real estate taxes, and insurance. |
$ |
| 10) |
Total household expenses (Add lines 5 through 9) |
$ |
| 11) |
Total number of persons who lived in household |
|
| Expenses for the Person You Supported |
|
| 12) |
Each person's part of household expenses (line 10 divided by line 11) |
$ |
| 13) |
Clothing |
$ |
| 14) |
Education |
$ |
| 15) |
Medical, dental |
$ |
| 16) |
Travel, recreation |
$ |
| 17) |
Other (specify) |
$ |
| 18) |
Total cost of support for the year (Add lines 12 through 17) |
$ |
| Did You Provide More Than Half? |
|
| 19) |
Amount the person provided for own support (line 2, plus line 5b if the person you supported owned the home) |
$ |
| 20) |
Amount others provided for the person's support. Include amounts provided by state, local, and other welfare societies or agencies. Do not include any amounts included on line 1. |
$ |
| 21) |
Amount you provided for the person's support (line 18 minus lines 19 and 20) |
$ |
| 22) |
50% of line 18 |
$ |
| Is line 21 more than line 22? Yes. You meet the support test for the person. If the other exemption tests are met, you may claim an exemption for the person. No. You do not meet the support test for the person. You cannot claim an exemption for the person unless you can do so under a multiple support agreement. See Multiple Support Agreement in this chapter. |
|
|
|
Person living in his or her own home.
The total fair rental value of a person's home that he or she owns is considered support contributed by that person.
Living with someone rent free.
If you live with a person rent free in his or her home, you must reduce the amount you provide for support by the fair rental value of lodging he
or she provides you.
Property.
Property provided as support is measured by its fair market value. Fair market value is the price that property would sell for on the open market.
It is the price that would be agreed upon between a willing buyer and a willing seller, with neither being required to act, and both having reasonable
knowledge of the relevant facts.
Capital expenses.
Capital items, such as furniture, appliances, and cars, that are bought for a person during the year can be included in total support under certain
circumstances.
The following examples show when a capital item is or is not support.
Example 1.
You buy a $200 power lawn mower for your 13-year-old child. The child is given the duty of keeping the lawn trimmed. Because a lawn mower is
ordinarily an item you buy for personal and family reasons that benefits all members of the household, you cannot include the cost of the lawn mower
in the support of your child.
Example 2.
You buy a $150 television set as a birthday present for your 12-year-old child. The television set is placed in your child's bedroom. You can
include the cost of the television set in the support of your child.
Example 3.
You pay $5,000 for a car and register it in your name. You and your 17-year-old daughter use the car equally. Because you own the car and do not
give it to your daughter but merely let her use it, you cannot include the cost of the car in your daughter's total support. However, you can include
in your daughter's support your out-of-pocket expenses of operating the car for her benefit.
Example 4.
Your 17-year-old son, using personal funds, buys a car for $4,500. You provide all the rest of your son's support - $4,000. Since the car is
bought and owned by your son, the car's fair market value ($4,500) must be included in his support. The $4,000 support you provide is less than half
of his total support of $8,500. You cannot claim an exemption for your son.
Medical insurance premiums.
Medical insurance premiums you pay, including premiums for supplementary Medicare coverage, are included in the support you provide.
Medical insurance benefits.
Medical insurance benefits, including basic and supplementary Medicare benefits, are not part of support.
Tuition payments and allowances under the GI Bill.
Amounts veterans receive under the GI Bill for tuition payments and allowances while they attend school are included in total support.
Example.
During the year, your son receives $2,200 from the government under the GI Bill. He uses this amount for his education. You provide the rest of his
support - $2,000. Because GI benefits are included in total support, your son is not your dependent.
Other support items.
Other items may be considered as support depending on the facts in each case. For example, if you pay someone to provide child care or disabled
dependent care, you can include these payments as support, even if you claim a credit for them. For information on the credit, see chapter 33.
Do Not Include in Total Support
The following items are not included in total support.
- Federal, state, and local income taxes paid by persons from their own income.
- Social security and Medicare taxes paid by persons from their own income.
- Life insurance premiums.
- Funeral expenses.
- Scholarships received by your child if your child is a full-time student.
- Survivors' and Dependents' Educational Assistance payments used for support of the child who receives them.
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