Deductions & credits

Thank you, @MonikaK1.

 

Bullet (b) applies as in they are physically incapable of self-care, lived with me (filing as single) for more than half of the year BUT my parents gross income is more than $4,700 filing their own joint return and are not my dependents. 

  • An individual who was physically or mentally incapable of self-care, lived with you for more than half of the year, and either: (a) was your dependent; or (b) could have been your dependent except that he or she received gross income of $4,700 or more, or filed a joint return, or you (or your spouse, if filing jointly) could have been claimed as a dependent on another taxpayer's 2023 return.

In the "Your 2023 Deductions & Credits" section > section "You and Your Family" >

  • Money-Saving Credits Related to Your Family > Do you want to see if you qualify for these credits? > Yes.
  • Did you pay for child and dependent care in 2023? Yes.
  • Enter Additional People > Would you like to go back to the Dependents section now? Yes.
  • Do You Have Children or Financially Support Another Person? Yes, I have children or financially support another person > Continue.
  • Who Do You Support? Another person (includes half and step relatives, and in-laws)
    The person I support is my: Parent > I entered my father's information and then, my mother's information who are US citizens, lived with me for the whole year in U.S. > parents married and filed joint return and paid taxes on interest earned, etc. but no W-2 (income).
  • Based on the above, my parents do not qualify as my dependents. 
  • "It turns out you don't qualify for this credit".

So, I guess my parents income has to be under $4,700 for the year in order to me to qualify taking any deduction/credit.  And I do not know how to claim them under "A person above the gross income limit for dependents - If the person who received the care would have been your dependent but he or she did not meet the gross income requirement (he or she earned more than $4,700, the limit for gross income), you can claim his or her care expenses as long as you meet other requirements for the child and dependent care credit."

 

I am confused.