My aunt receives va pension, can i claim her as a dependent?

[jacmardav]

My aunt currently receives a pension from VA for low-income/no income vets. I wanted to know if I am able to claim her as a dependent on my taxes, as I do pay for half of her expenses. 

I just don't want anything to affect her pension. I am afraid that if i claim that I'm helping her, that her payments would be affected.

Thank you.

[IreneS · Accepted solution]

Maybe.  You may claim your aunt as a dependent on your return if she meets the four tests for a qualifying relative:

1. Not a qualifying child - Since she is your aunt, she is not your child.
2. Member of household or relationship test – Certain relatives don't have to live with you to meet this  test:   

• Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). (A legally adopted child is considered your child.)
• Your brother, sister, half-brother, half-sister, stepbrother, or stepsister.
• Your father, mother, grandparent, or other direct ancestor, but not foster parent.
• Your stepfather or stepmother.
• A son or daughter of your brother or sister.
• A son or daughter of your half brother or half sister.
• A brother or sister of your father or mother.
• Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

3.  Gross income test - To meet this test, a person's gross income for the year must be less than $4,050.  Gross income is all income in the form of money, property, and services that isn't exempt from tax.

4. Support test - To meet this test, you generally must provide more than half of a person's total support during the calendar year.  You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. This includes support the person provided from his or her own funds.

 Worksheet 2 in IRS Pub. 501 (p. 16) may be helpful in figuring whether you provided more than half of your aunt’s support.

If your aunt meets all four tests, you may claim her as a dependent on your return.

You may wish to go to the U.S. Department of Veterans Affairs Veterans Pension website for information on whether claiming your aunt as a dependent would affect her pension eligibility.

[Carl]

No. I already know that this will have no effect on the pension, or VA disability pay. While the pension is taxable income and could very well prevent you from qualifying to claim her if it's over $4K, the VA disability pay is non-taxable, and the amount does not matter since it's not taxable or reportable on any tax return.