ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Monday, January 27, 1997 TAG: 9701280035
SECTION: MONEY PAGE: 6 EDITION: METRO
Gender immaterial when qualifying as dependent
Q: My sister is overly kind and generous. For the last year, she has supported her female roommate who has become disabled and is collecting nontaxable Social Security. My question is regarding whether my sister can claim her roommate as a dependent. She passes the joint return test, the citizen test, the gross income test and the support test.
The key here is the wording on the member of household or relationship test. If the person is not a relative, then she has to have lived with you for the entire year and the relationship must not violate local law.
My sister is "straight." I know it is illegal in Virginia for unmarried "couples" to cohabitate, but what about unmarried persons? I have called around to several local commissioner of revenue offices, and I have received either conflicting answers or an answer that does not answer my question, such as "Virginia abides by all federal laws."
Can my sister claim her roommate as a dependent? If yes, would she have a harder time if the facts were the same but her roommate was a male?
A: A taxpayer is entitled to a deduction equal to the exemption amount for each person who qualifies as a dependent. A person qualifies as a dependent only if all five of the following tests are met:
* The person is related to the taxpayer or is a member of the taxpayer's household for the entire year.
* The person's gross (taxable) income doesn't equal or exceed the exemption amount for 1996 or $2,550. (There is an exception for certain children.)
* The taxpayer provides more than half of the support. (There are exceptions where more than half the support is provided by multiple persons. One taxpayer may claim the dependent under a multiple support agreement.)
* The dependent does not file a joint return.
* The dependent meets tests concerning citizenship or is a resident of the United States, Canada or Mexico.
Your sister can claim the deduction if the roommate meets all five of these criteria. The tax code is gender-neutral, and these rules would apply to anyone.
-Answered by Harry Schwarz of H. Schwarz & Co.
Tax-related questions from our readers are answered by members of the Roanoke chapter of the Virginia Society of Certified Public Accountants. This feature runs every Monday on the Money Page through April 7. Please send your questions by March 30 to: Tax Questions, The Roanoke Times, P.O. Box 2491, Roanoke 24010.
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