Question

Following is a list of information for Michael and Diana Lapin for the tax year 2019. Michael and Diana are married. Michael is a lawyer working for a Native American law firm, Native American Justice, Inc. Diana works part-time for Creation, a genetic research lab. Paul Harris, he is 50 years old and a homeless family-friend that lived all year in the lapin’s basement. The Lapin’s provide all of Paul’s support. Assume that all other requirements are met by each potential dependent. Can the Lapin claim him as a dependent for tax purposes?

Answer 1

A dependent refers to a person being an individual who depends upon the tax assessee for survival and living; and must be a relative.

According to IRS rules, following conditions must be met to be a dependent for tax purposes:

1. qualifying relative must not be a qualifying child of the taxpayer or of anyone else
2. The qualifying relative must either live in the taxpayer's household all year or be related to the taxpayer as a child, sibling, parent, grandparent, niece or nephew, aunt or uncle, certain in-law or certain step-relative.
3. The qualifying relative must have a gross income of less than $4,200. This amount can increase every year.
4. The qualifying relative must have received more than half of their financial support for the year from the taxpayer.

In the given case, Paul satisfies all the above conditions for a dependent.

1. Paul is not a child of Lapin

2. Paul has lived in Lapin's basement (house) all year.

3. Lapin provides all of Paul's support, meaning he has no income of his own.

4. Paul has received all his financial support fron Lapin

Therefore, assuming that Lapin is not claiming anyone else as a dependent, he can clain Paul is a dependent for tax purposes.