topic Dependents in Deductions & credits

Dependents

magassoc — Thu, 11 Feb 2021 17:10:19 GMT

My mother-in-law lives with us. Her income outside of social security is less than $2000/year. Can I claim her as a dependent? What are the tax benefits of claiming her as a dependent?

Re: Dependents

DoninGA — Thu, 11 Feb 2021 17:13:00 GMT

You will receive a $500 Other Dependent tax credit. Any medical expenses you pay on her behalf would be deductible as an itemized deduction on your tax return.

You may be able to claim her as your dependent under the Qualifying Relative rules if she meets all the requirements.

To be a Qualifying Relative -

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross income for the year must be less than $4,300 (social security does not count) in 2020
4. You must provide more than half of the person's total support for the year.
5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.
6. The person must not file a joint return with their spouse.

Re: Dependents

xmasbaby0 — Thu, 11 Feb 2021 17:13:02 GMT

If you claim your MIL you get a $500 credit for other dependents. You do not receive a stimulus check for claiming her. (and she does not receive a stimulus check if claimed as a dependent.)

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-credit

https://ttlc.intuit.com/community/children-dependents/help/what-does-financially-support-another-person-mean/00/26532