Allegan, MI asked in Tax Law for Michigan

Q: Does becoming officially disabled, retroactively apply to previous year's taxes?

I recently won my disability case. They are paying me for the last four or so years back pay of benefits. I meet all the requirements then and now to be someone's dependent because of that. Can that person claiming me amend previous year taxes for the benefit of being a dependent?

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1 Lawyer Answer
Glen E. Frost
Glen E. Frost
  • Tax Law Lawyer
  • Stevenson, MD

A: In order to determine whether a taxpayer is able to amend prior year returns to claim deductions related to provisions made on behalf of a disabled individual, a qualified tax professional should be consulted to consider the numerous factors at play. A tax professional must review the complete set of facts and circumstances and apply them to such things, including but not limited to, whether: (1) the disabled individual meets all requirements to qualify as either a “qualifying child” or “qualifying relative” of the taxpayer; (2) the “support test” in the case of a “qualifying relative” is satisfied; (3) the “gross income test” is satisfied for purposes of determining whether a “qualified relative” is a dependent; and (4) an allocation of the exemption is necessary in the case where multiple taxpayers have provided support.

Remember, even though the personal exemption deduction is zero for tax years 2018 through 2025, that amount is not applicable to the gross income limitation in the “qualifying relative” definition. See IRC §151(d)(5).

Again, this is not a determination that we recommend you tackle on your own—get help from a tax professional!

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