Deduction for finacial support of elderly disabled but independent living parents

[geiger54]

I provide financial support to my elderly parents (i.e. support with living and utility expenses). They are both legally disables but still live independently from me so they don't qualify as dependents. 

Is there any way to get credit for the funds I provide them??  Thanks

[DoninGA]

No, sorry that type of support is not deductible.  Living expenses are never deductible on tax return.

That would be considered gifts to your parents and gifts are not deductible nor reported on a tax return.  Nor would your parents report the gifts received on their tax return.

[Hal_Al]

You may be able to claim them as dependents.  

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). . The Other dependent (qualifying relative) credit is worth (up to) $500 per dependent and is non-refundable.  That is, it can only be used to reduce an actual tax liability.

A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

1. Closely Related OR live with the taxpayer ALL year   
2. His/her gross taxable income for the year must be less than $4200 ($4150 in 2018). Social security, generally, does not count as income 
3. The taxpayer must have provided more than 1/2 his support
4. He must be a US citizen or resident of the US, Canada or Mexico
5. He must not file a joint return with his spouse or be claiming a dependent of his own
6. He must not be the qualifying child of another taxpayer

Nontaxable Social security (or SSI) doesn't count as income, for the income test, but social security money he/she spends on her self does count as support not provided by you, for the support test. Money they put into savings & investment does not count as support they spent on themselves. Note that a parent is closely related so there is no requirement that they 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. 

As others have said, generally you cannot deduct your support expenses (you get the dependent credit instead). An exception is that you can deduct medical expense, if they are your dependents.

Furthermore,  

If your parent (or other close relative) cannot be your dependent because he had more than $4,200 of gross income, but otherwise would have qualified as your dependent (basically that you & other family members provided more than half his support), then you can include in your deductible medical expenses any qualifying medical expenses you paid on his/her behalf just as if he/she was your dependent.