Can I claim my parents (both over 50 years old) and a younger sibling (over 30 years old) as dependents on my 1040? What deductions or credits would I be eligible for?
My parents don't work so they don't have any income (no W-2). They owned a home as their primary residence and I support them financially throughout 2024. My sibling has a low paying job (earning minimum wage) and stays in my primary residence and I occasionally provide some financial support.
If your parents own the home. The question is who pays all the upkeep, food, utilities, real estate taxes? you need to add all those up to determine if they would qualify.
To meet this test, a person must either:
Live with you all year as a member of your household, or
Be related to you in one of the ways listed under Relatives who don't have to live with you below.
If at any time during the year the person was your spouse, that person can't be your qualifying relative.
Relatives who don't have to live with you.
A person related to you in any of the following ways doesn't have to live with you all year as a member of your household to meet this test.
Your child, stepchild, or 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.
A dependent is a qualifying child or relative who relies on you for financial support. To claim a dependent for tax credits or deductions, the dependent must meet specific requirements.
Answer questions to see if you can claim someone as a dependent on your tax return
See the full rules for dependents
These rules generally apply to all dependents:
To qualify as a dependent, a child must also pass these tests:
See the full rules for a qualifying child
A qualifying relative must meet general rules for dependents and pass these tests:
See the full rules for a qualifying relative
You can currently claim dependents only for certain tax credits and deductions. Each credit or deduction has its own requirements.
You can be claimed as a dependent and still need to file your own tax return. Your filing requirement depends on your income, marital status and other criteria. Find details on filing requirements for dependents.
See if you need to file: answer questions to find out
You may want to file anyway so you can get any federal income tax your employer withheld back as a refund or claim certain refundable tax credits.
Dependents, Standard Deduction, and Filing Information, Publication 501
It depends. Your parents or siblings don't have to live with you but they must meet the requirements below for a Qualifying Relative:
For additional information, review the TurboTax article Rules for Claiming a Dependent on Your Tax Return.
Just want to be sure I'm doing this correctly. Do I need to provide receipts or some kind of proofs to show that I paid for all my parents expenses throughout the year? Or can I just make that determination based on the best of my knowledge and claim them as dependents? Are there any expenses that would not qualify?
Thanks.
Here is the dependent support worksheet. This will tell you if you paid over half of their support and the expenses that qualify. Most living expenses qualify.
You do not have to show proof when you file your return or send anything in to prove that you can claim them. But filling out and keeping that worksheet along with any proof (like bank statements) is always a good idea to keep with a copy of your tax return.
How much deduction/credit would each qualified dependent that I can claim add to my standard deduction?
Nothing is added to your standard deduction when you claim a dependent. Your standard deduction is based on your filing status of Single, Married, etc.
The standard deduction makes some of your income “tax free.” It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.
2024 STANDARD DEDUCTION AMOUNTS
SINGLE $14,600 (65 or older/legally blind + $1950)
MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1550)
MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1550)
HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1950)
If you claim a qualifying relative dependent you get a $500 credit which is non-refundable but can lower the tax you owe.
@yatoshura you only need to save the documentation if you are audited. This is a risky proposition if the home is in your parents names so ensure you actually meet the support tests that I linked to in my prior answer. A home has many expenses plus food, etc. Even if on food stamps, that is others support, not yours. So ensure all those tax payments, mortgage payments, repairs, food bills, tuition expenses, you retain proof you actually paid.