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  1. #1
    JustMe is online now Diamond level (5000+ posts)
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    Default "disabled" child and taxes

    I am using Turbotax this year and wondered if I should check the box that asks if your child was disabled. I tried to read the definition, but it was confusing. Is anyone clear on the rules/guidelines for this? I don't want to post the disability here, but I am asking for info on what kind of documentation I need, what the criteria are, etc. I tried to do some research, but got confused as much of the info pertains to adults, and this is very clearly in the child section (when you are asked about your dependents). It looks like I wouldn't get a federal credit, but I could get a state credit.

    Thanks!
    lucky single mom to 20 yr old dd and 17 yr old ds through 2 very different adoption routes

  2. #2
    elliput's Avatar
    elliput is offline Diamond level (5000+ posts)
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    From the IRS website-
    A Qualifying Child with a Disability

    To be your qualifying child for EITC, a child must have a Social Security Number that is valid for employment and pass all the age, relationship, residency, and joint return tests. Your child must be your son, daughter, adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister or a descendent of any of them.
    Age Test for Qualifying Child with a Disability. There is no age limit and the child does not have to be younger than you if the qualifying child is permanently and totally disabled. Your qualifying child is permanently and totally disabled if both of the following apply:

    1. He or she cannot engage in any substantial gainful activity because of a physical or mental condition and
    2. A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death.


    If the qualifying child receives disability benefits, you can still use the child for EITC purposes. Read more about the additional tests for a qualifying child here.

    Proof of Permanently and Totally Disabled. To prove your claim of EITC for a child who is permanently and totally disabled, you need a letter from the child’s doctor, other healthcare provider or any social service program or agency verifying the child is permanently and totally disabled
    Erica
    DD 1/05
    DS 9/08

    Since one just does not simply walk into Mordor, I say we form a conga line and dance our way in.
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  3. #3
    JustMe is online now Diamond level (5000+ posts)
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    Thank you!

    I still don't get it though. How would substantial gainful activity be defined for a child? Anyone know?
    lucky single mom to 20 yr old dd and 17 yr old ds through 2 very different adoption routes

  4. #4
    hillview's Avatar
    hillview is offline Blue Diamond level (20,000+ posts)
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    found this.
    http://www.socialsecurity.gov/OP_Hom...-53-di-01.html
    I wonder if it is only really useful from a tax stand point if the child is over 18 and cannot work?
    DS #1 Summer 05
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  5. #5
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    I believe "disabled" is the legal definition used by the Social Security Disability Administration. Children have a different standard than adults. It typically is harder to be determined "disabled" as a child than an adult.

    Disability Criteria
    Under current regulations, the SSA considers a child (birth to age of 18 years) to be disabled if:

    -the child has a medically determinable physical or mental impairment (or combination of impairments) that results in marked and severe functional limitations; and

    -the disability has lasted or is expected to last at least 1 year or is expected to result in death (within 1 year).

    There is a list of conditions that qualify the child immediately as "presumptively disabled" including terminal cancer, blindness, deafness, severe mental retardation, etc.

    More info here: http://pediatrics.aappublications.or...24/6/1702.full

    You can check with an attorney specializing in SSDI for more information as well, but it is a pretty high threshold AND there are income limits for the parents. However, you might qualify for the tax deduction even though your child wouldn't be eligible for SSDI benefits. I'd check with a CPA or tax attorney on that one.

  6. #6
    JustMe is online now Diamond level (5000+ posts)
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    Thank you. So confusing.

    An agency I worked with said she would qualify for SSI based on her disability/functioning (not that they get to determine that, but based on their knowledge/experience), but I did not qualify as I have more than the $2000 in resources. In doing Turbotax, it seems that I would get a state credit (but not federal) if she qualifies. My state does give the credit to underage children, she does not need to be of working age. Now to to continue to figure out if she qualifies disability wise. I guess I could just see if my ped. is willing to write a letter, as that seems to be the necessary documentation, but I hate to bother her unnecessarily. I dont have a lawyer or an acct., so will keep trying to figure this out.
    lucky single mom to 20 yr old dd and 17 yr old ds through 2 very different adoption routes

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