topic Re: Parent is my dependent in Get your taxes done using TurboTax

Parent is my dependent

Ivyalex28 — Wed, 29 Jan 2025 09:37:27 GMT

Adult parent is my dependent, but she does receive non taxable SSDI and a 1099-int (about $150) Since her income is non taxable and I pay the home expenses, I can claim her as my dependent right? And assuming I am correct, does she need to file a return with her SSDI payments and 1099 income?

Re: Parent is my dependent

MindyB — Wed, 29 Jan 2025 13:38:27 GMT

You may be able to claim her as an "other dependent", assuming she has met all the tests, from: Rules for Claiming Dependents on Taxes:

Do they live with you? Your relative must live with you all year as a member of your household or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list, including parent, so you have met this test.
Do they make less than $5,050 in 2024 ($5,200 for 2025)? Your relative can't have a gross income of more than $5,050 in 2024 and be claimed by you as a dependent. This threshold increases to $5,200 for 2025. Certain income is excluded from this requirement such as all or part of Social Security benefits.
Do you financially support them? You must provide more than half of your relative's total support for the year.

Based on the information you provided, she do not need to file a tax return, because her unearned income is less than $1,300. Also per the IRS, generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return. See this helpful article for more information: Do I need to file my own taxes if I'm a dependent?

Re: Parent is my dependent

Hal_Al — Wed, 29 Jan 2025 13:52:22 GMT

Q. Since her income is non taxable and I pay the home expenses, I can claim her as my dependent right?

A. Yes. She meets the relationship and income tests. So, it hinges on the support test.

Nontaxable Social security doesn't count as income, for the income test, but social security money she spends on her self does count as support not provided by you, for the support test. Money she puts into savings & investment does not count as support she spent on herself. Note that a parent is closely related so there is no requirement that she live with you at any time, during the year. But if you provided a home it helps your support case, unless they own the home you live in. If no one person (or married couple) provides 50% of the support (for example your siblings are also sending support), then a "multiple support agreement” (IRS Form 2120) can be used, to allow you to claim the dependent. https://www.irs.gov/pub/irs-pdf/f2120.pdf

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of a home is the fair market rental value, divided by the number of occupants.

Q. Does she need to file a return with her SSDI payments and 1099 income?

A. No. The threshold for filing 1099 income is $1300.

Social security (including SSDI) only becomes taxable when your income, including 1/2 your social security, reaches:

Married Filing Jointly(MFJ): $32,000

Single or head of household: $25,000

Married Filing Separately and lived with your spouse at any time during the tax year: $0