Your parent can be your dependent if they had less than $4300 of taxable income for 2020 AND if you provided more than half their total living support. The $4300 figure will rise each future year with an inflation adjustment.
For this year and every future tax year, you have to consider both their taxable income and their total living expenses. You get credit for the fair market rental value of the home that you provide as support you provide. If you provide any other support, such as food or a financial allowance, that also counts as support that you provide. Support that they provide themselves includes money that they spend from savings or from investments or from Social Security. (Remember that even though Social Security may not be taxable income for the income test, it is always support they provide themselves for the support test.) support provided by other people, such as charities or the government, does not count as support provided by you or provided by them self. You must add up their total living expenses and determine whether you provided more than half the total of their support.
