To claim your parents as dependents, they do not have to live with you but you must meet three conditions:
1) Their gross taxable income must be less than $4200.
2) You must provide more than half their total living expenses.
3) They can’t file a joint tax return.
SSI is not taxable income but it does count as support they provide themselves, along with any other income they have.
If their income was less than $4200, they would not be required to file a tax return. If the income of one spouse is more than $4200 and they file a joint return, you can’t claim them. If the income of one spouse is over $4200 and that spouse files a separate return, you might be able to claim the other spouse without income.
If one or both of your parents are not disqualified by the $4200 taxable income test, you would then have to add up all of their living expenses and determine whether you provide more than half.
Support that you provide for them includes a percentage of your home expenses, including rent, utilities, insurance, food, and so forth. As well as any personal expenses you pay for such as clothing, travel, and medical expenses.
