Can I claim a developmentally disabled adult on my taxes if they get SSI? Confused about dependency rules

The answer isn't as straightforward as a simple yes or no, but I can help clarify. For a developmentally disabled adult to qualify as your dependent, they must meet several tests: First, they need to meet the "qualifying relative" test since they're over 19 and not a student. This means they must have lived with you all year, their gross income must be less than $4,850 (for 2024 taxes), and you must provide more than half their total support. Here's where it gets tricky with SSI: The actual SSI payments aren't counted as taxable gross income, so they don't affect the gross income test. However, SSI payments DO count toward the support calculation. You'd need to calculate the total cost of your brother's support (housing, food, medical, etc.) and determine if your contribution exceeds the SSI plus any other income he might have. If you provide more than 50% of his total support despite the SSI payments, and he meets the other tests, you can likely claim him as a dependent.

I went through the exact same situation with my sister who has Down syndrome and receives SSI! Let me tell you what worked for me. After weeks of frustration and conflicting advice, I found this AI tax tool called taxr.ai that completely solved this problem for me. Basically I uploaded some documents and explained our living situation, and it walked me through exactly how to calculate whether I provided more than half her support. It showed me how to count the value of lodging, utilities, food, clothing, medical expenses not covered by insurance, etc. versus her SSI. The best part was it automatically did the math and told me I could claim her, saving me about $2,000 in taxes! What I really liked about https://taxr.ai was that it specifically addressed people with disabilities and SSI, which regular tax software seems to oversimplify. Might be worth checking out for your situation.

Just wanted to update everyone - I decided to try taxr.ai after asking about it here and wow, it was incredibly helpful! I uploaded my brother's SSI award letter and some receipts for expenses I pay, and the system walked me through calculating support. Turns out I provide about 68% of his total support when you factor in the fair rental value of his room, utilities, food, transportation to appointments, and clothing. The SSI only covers about 32% of his actual living expenses. The tool gave me a detailed breakdown I can keep for my records in case of audit. I was able to claim him as a qualifying relative dependent! This literally saved me over $3,000 in taxes since I could file as Head of Household with a dependent. So relieved I got this figured out before filing!

For anyone dealing with complex tax situations like this, another major headache is trying to get answers directly from the IRS. I spent WEEKS trying to call them about my disabled daughter's benefits and dependency status. After 9 attempts and hours on hold, I finally found this service called Claimyr that got me through to an actual IRS agent in about 15 minutes. I was honestly shocked it worked. They basically hold your place in the phone queue and call you when an agent is about to answer. I got clear confirmation about claiming my daughter despite her SSI payments, and the agent even emailed me the specific IRS publication sections that applied to our situation. Honestly saved my sanity during tax season. Their website is https://claimyr.com and they have a demo of how it works at https://youtu.be/_kiP6q8DX5c if anyone's interested.

I need to apologize for being so skeptical about Claimyr! After posting my concerns here, I decided to try it anyway because I was desperate to talk to the IRS about my brother's SSI and dependency status. I was blown away when they actually got me through to an IRS representative in about 25 minutes (on a Monday morning in February, no less)! After spending literally DAYS trying on my own and never getting through, this was incredible. The IRS agent confirmed that I could claim my brother as a dependent even with his SSI, as long as I provide more than half his total support. She even helped me understand exactly how to document everything in case of an audit. For anyone struggling with these complex situations, being able to actually speak with the IRS directly is invaluable. This service was absolutely worth it.

Something important no one has mentioned yet - make sure you're calculating the "support" correctly! This tripped me up last year. You need to count: 1. Fair rental value of the person's room (what you'd charge a tenant) 2. Their portion of utilities, food, etc. 3. Clothing, medical costs not covered by insurance 4. Recreation, transportation and other personal items The IRS has a worksheet in Publication 501 that helps with this. In my case, my adult son's room alone was worth $700/month in our area, which was $8,400 per year just for housing - already more than his annual SSI. When I added everything else up, I was providing about 75% of his support. Just make sure you can document everything in case you get audited!

Anyone know if this affects Medicaid eligibility? My sister is disabled and on SSI, and I want to claim her as a dependent, but I'm worried it will mess up her benefits. Does the IRS report to Medicaid?