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?
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!
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.