My daughter receives Social Security benefits as a dependent of a disabled person. Her first payment was a retroactivelump sum to cover benefits for which she had been eligible the previous two years.

What do I use for the purpose of calculating the Support Test? The lump sum covered more than half her support for this year, but it was meant to reimburse expenses she had incurred over three years.

My daughter receives Social Security benefits as a dependent of a disabled person. Her first payment was a retroactivelump sum to cover benefits for which she had been eligible the previous two years.

What do I use for the purpose of calculating the Support Test?

You use the amount spent in 2000 on her support. Let's say for the sake of argument that she puts her entire SS payment in a savings account. She has spent zero on her support. See IRS Publication 501.

Phil Marti
VITA Volunteer

Thank you for that answer.

What I had in mind: can I regard her lump-sum payment for this year to be reimbursement to me for her prior-year living expenses (which, in fact, is what it was)? And what documentation do I need.

What I had in mind: can I regard her lump-sum payment for this year to be reimbursement to me for her prior-year living expenses (which, in fact, is what it was)? And what documentation do I need.

I don't know if this would hold up under examination or not. If you do it, I suggest you go back and recalculate support for the years in question to determine whether she still would have qualified as a dependent. (I'm assuming you claimed her as a dependent in those years.) IOW, don't try to say that payments in 2000 were for prior years' support but fail to include it in total support for those years.

You might want to try the IRS e-mail question tool at www.irs.gov.

Phil Marti