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eric l | If 20 yr. old Kid has own auto insurance-own auto. Can parents list him as dependent on tax and not be liable? |
1.Would claiming son as a dependent on tax return make parents financially liable if son were to get into an auto accident even though he has his own auto insurance? |
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Keine Kinder
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It is likely that you will not be liable. However , your tax return is hard evidence that claim you are providing half your adult child's support.
If your son is in an accident, and the other party is a poor migrant worker with 4 kids, then you could be in trouble. If he, or she, has a lawyer that is good at pulling on the courts' hart-strings, then he or she could be successful pulling you in on the liability.
Trust me, the lawyer will say, "My client makes only $18 a day to support is 4 kids. Bla Bla Bla".
I went though this when an intoxicated illegal alien, with 4 kids in the car hit me. He had no insurance, expired tags, a suspended drivers license. Somehow he could afford gigantic woofers, chrome wheels, and a boatload of CD's. He also had a lot of jewelry, and a tricked out haircut, but didn't have baby seats for the kids.
Right after he got out of jail, he hired a Spanish speaking lawyer. No he didn't win anything. but he sure put me though a lot of headache. |
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lokolobo
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If you are employed and are above the age of 18 your parents should not be claiming you as a dependent. |
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Ominous
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Technical standards no. He has a job (better have a job to pay for that) and is a technical adult (over 18), even if he might not act like it sometimes. (Parental Humor)
But lets just hope he doesn't get into an accident so you can ignore this question. |
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Other Guy
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The issue of dependency on a tax return and the fact that he has his own insurance are probably mutually exclusive events. The rules for dependency for your tax return are very specific rules set by the IRS. Liability law is a tricky subject and I recommend talking to a lawyer. Even if you are not liable for an auto accident, it doesn't mean you won't be named in a lawsuit. People sue everyone they can think of these days. |
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mbrcatz
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apples and oranges! You'll have to read the IRS definitions of dependents. It has NOTHING to do with auto insurance.
Basically, it says, if he lived with you, and/or you provided the majority of his financial support, for at least six months.
I've had parents of a 26 year old, who was living at home, held responsible for damages he did while driving, in his own car with his own insurance.
So it's not claiming him that makes you liable, it's supporting him. Does he live under your roof? Or do you pay his rent & utilities? Well, then you've got some exposure. |
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