topic Can you pay (all) someone’s bills and claim that money?? in Deductions & credits

Can you pay (all) someone’s bills and claim that money??

ciarra026 — Wed, 04 Nov 2020 17:56:51 GMT

Re: Can you pay (all) someone’s bills and claim that money??

DoninGA — Wed, 04 Nov 2020 18:02:23 GMT

If you are not personally liable for a debt you cannot claim a debt repayment on your tax return. Personal debt repayments are never reported on a tax return.

What type of debts are you referring to?

Re: Can you pay (all) someone’s bills and claim that money??

Opus 17 — Wed, 04 Nov 2020 18:07:56 GMT

You can deduct medical expenses that you pay for yourself, your spouse, your dependents, and for someone who could be your dependent except for their income. This last rule mostly applies to a person who pays medical expenses for an adult child or their parents for whom they provide more than 50% of their support.

If you pay more than 50% of someone's total financial support (who is not your relative), AND that person lives in your home all the days of the year, AND that person has less than $4300 of their own taxable income, then you can list them on your tax return as an "other" dependent, which is a $500 tax credit. But it is not a deduction for their expenses.

Except for medical expenses or the "other dependent" rule, there is no other tax deduction for paying someone else's living expenses.

Re: Can you pay (all) someone’s bills and claim that money??

VolvoGirl — Wed, 04 Nov 2020 18:09:10 GMT

Like what bills did you pay? You can't even deduct most of your own bills except things like medical, mortgage interest and taxes. You might be able to claim them as a dependent if they lived with you all year and made less than $4,200 for the year. Are they related to you?

If you paid their bills it usually is considered a gift and you can not deduct gifts to other people. Only to IRS Qualified Charities.

Re: Can you pay (all) someone’s bills and claim that money??

xmasbaby0 — Wed, 04 Nov 2020 19:23:33 GMT

Even if the person whose bills you paid is your tax dependent you cannot deduct all the bills you paid for them. Money you provided to another individual is a gift, and is not deductible. The exception is one already mentioned by another person who replied to you--did you pay medical bills for someone else?

Are you really asking about claiming someone as a dependent?

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

Re: Can you pay (all) someone’s bills and claim that money??

Hal_Al — Thu, 05 Nov 2020 01:25:57 GMT

Q. Can you pay (all) someone’s bills and claim that money?

A. Simple answer: No.

But, as the other replies indicate, there are a few exceptions. So, it depends on the details. Paying someone's bills constitutes financial support. Support is one test (but not the only test) for claiming someone as a dependent, which might allow you a $500 other (other than a child) dependent tax credit.

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html