- 9 - Section 151(c)(1) further provides, as a condition for the dependency exemption, that the gross income of the dependent for the taxable year be less than the "exemption amount" for that year, unless the claimed dependent is a child of the taxpayer under the age of 19 (24 if the child is a student).2 Social Security payments are not "income" within the meaning of section 151 unless the recipient is subject to section 86(a); however, in determining whether a taxpayer contributed over half the support of another, amounts of support paid by Social Security benefits are considered. See Black v. Commissioner, T.C. Memo. 1972-135. Thus, for purposes of section 151, Geneva (petitioner's mother) had no income for the year in question. However, in determining whether petitioner contributed over half of Geneva's support during the relevant years, the Court must consider the Social Security benefits received by Geneva in those years. Respondent agrees that petitioner would be entitled to a dependency deduction for Geneva, but for the fact that petitioner did not provide over one-half of Geneva's support during the relevant years, as required by section 152. Respondent contends that Geneva's Social Security benefits exceeded one-half of the amount spent for her support for each of the years at issue. 2 Under sec. 151(d)(1) and (4), the "exemption amount" was $2,000 for 1989, $2,050 for 1990, $2,150 for 1991, and $2,300 for 1992.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011