Dependent Status Memo

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Memorandum Date: 1/23/2013 TO: File: Kim Valentini FROM: John Smith III, Staff Accountant Subject: Qualifying dependent status Relevant Facts Kim Valentini was in an automotive accident many years ago. This accident left her with permanent short and long term memory problems. She now lives with her parents and holds a full time job making minimum wage. She is unable to live alone. She is unable to secure employment outside of her current job. She is currently 36 years old. Specific Issues Can Kim Valentini’s parents claim her as a dependent for their 2012 tax return. Conclusion Kim’s parents cannot claim her as a dependent using qualifying child or relative. Support The IRS has five tests that must be passed in order to be…show more content…
(B) rule for disabled. In the case of an individual who is permanently and totally disabled (as defined in section 22(e)(3) ) at any time during such calendar year, the requirements of subparagraph (A) shall be treated as met with respect to such individual.” Section 22(e)(3) states that, “An individual is permanently and totally disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered to be permanently and totally disabled unless he furnishes proof of the existence thereof in such form and manner, and at such times, as the Secretary may

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