Q & A | Can an Emancipated Minor be a Dependent?

Question from a Blog Reader

"We have a husband and wife at our HUD PBRA property who are living in a unit with their two children and the wife's brother, who is 16 years old. He is an emancipated minor because of his parent's drug dependency problems. He is a junior in high school and is working and makes over $10,000 a year. Does he qualify as a dependent and for the $480 limit on earned income on adult dependent income? It seems that we should treat him as an adult, as he is emancipated, and count all of his earned income."

Answer

Summary: He should be treated as a minor dependent. All earned income should be excluded.

The HUD 4350.3 says, "If an emancipated minor is residing with a family as a member other than the head, spouse, or co-head, the individual would be considered a dependent and his or her income handled in accordance with subparagraph 3 below." Subparagraph 3 tells us that earned income is not counted for minors, so it is inaccurate to count $480 like we would for adult dependents.

This means that for subsidized rent programs like Section 8 and Rural Development, the household is eligible for the $480 dependent deduction. For tax credits, HOME, and other programs that use the HUD income rules (but don't have any deductions), the earned income would still be excluded. 

 Looking for quality affordable housing occupancy training? Check out our Succeed at Qualifying Households series of courses. There are options for all major Affordable Housing programs. You can read more HERE.