Hi,
This is actually a really great question. It is a nice provision that parents can be a dependent but there are a few special rules that apply. Champ Opus17's response was great. To add to his response I found an article that provides more information about claiming a parent as a dependent. For example, here are some specifics regarding her income:
Your parent must first meet income requirements set by the Internal Revenue Service to be claimed as your dependent. To qualify as a dependent,
- Your parent must not have earned or received more than the gross income test limit for the tax year.
- This amount is determined by the IRS and may change from year to year.
- The gross income limit for 2020 and 2021 is $4,300.
- Generally, you do not count Social Security income, but there are exceptions. If your parent has other income from interest or dividends, a portion of the Social Security may also be taxable.
Here's a link to the article. I think it will be a helpful resource: https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34je....
Feel free to ask more questions and happy filing this year!
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