Does she need to file?

[jchvz]

My mother received a 1099-R for $2574.96,  SSA-1099 for $18221.00, 1099-C for $4983.18, and a W-2 for $846.00 but I sustain her. Does she need to file her own taxes or can I claim her as a dependent? She is over than 70 years old.

[DaveF1006]

It depends on two different things.  Based on the information given, here is an analysis.

To determine if you can claim your mother as a dependent, we have to look at two specific IRS tests for a "Qualifying Relative": the Gross Income Test and the Support Test.

1. The Gross Income Test (Limit: $5,200)

To be claimed as a dependent, your mother’s taxable gross income must be less than $5,200 for the year 2025.

1. W-2 Income: $846.00 (Counts)
2. 1099-R (Pension/IRA): $2,574.96 (Counts)
3. 1099-C (Canceled Debt): $4,983.18 (Usually Counts)
4. SSA-1099 (Social Security): $18,221.00 (Usually Excluded)

If we add the W-2, 1099-R, and 1099-C, her total taxable gross income is approximately $8,404. This is over the $5,200 limit, which would mean you cannot claim her.

The only caveat is that she was insolvent at the time the canceled debt was forgiven, then the income is excluded.  Some questions pertain to this when you enter the income and information in the 1099-C section of the interview in your return.

If the debt is excluded, there will drop in income below the $5200 threshold and you may be able to claim her if you qualify under the support test. To qualify.

1. You must provide more than 50% of her total financial support for the year.
2. If she has $18,221 in Social Security. Even if it isn't taxed, the IRS considers any of that money she spends on herself (housing, food, clothes) as "support she provided for herself."
3. If this is the case, you must prove that the amount you spent on her (fair rental value of the room in your home, food, medical bills, etc.) is greater than the $18,221 plus the other income that she spent on herself. Could be a tough sell.

As far as if your mother needs to file a return, the answer is yes for two reasons.

1. If there is a withholding tax withheld,  she should file to receive a refund. Often times, there are taxes withheld from a 1099R.
2. If she does not file and include Form 982 (to prove insolvency), the IRS will assume that $4,983.18 is taxable income and may send her a bill later. Form 982 is automatically generated in a return if you report she was insolvent at the time she received the 1099-C.