Housing for parent

[gesnipes]

My house has a full basement apartment. My parents are living in this space rent-free. Can this be claimed as a deduction, and if so, where would this go? TTax does not have them as a drop down under dependent care and says they don't qualify unless under age 13.

[ThomasM125]

You may be able to claim your parents as Qualifying Relatives. The basic requirements are that they earn less than $4,300 (excluding social security income) each and you furnish over half of their support. You can enter them as dependents in TurboTax and the program will ask you the necessary questions to determine if they qualify.

You can learn more about this by using this link:

Other dependents qualifications

[Mike9241]

since they are family members being charged less than the fair rental value, you are not entitled to ay deduction for letting them stay in your house. you may be able to claim them as qualifying relatives if all these tests are met

Qualifying Relative all these tests apply to each so you might qualify to claim one but not the other 

• Live in your household the entire year. Absences for medical treatment are ignored
• gross income for 2021 less than $4,300 
• you provide over ½ their support 

[gesnipes]

They meet all these qualifications, but the only thing I can find is the $500 income tax credit.

I'm asking specifically about using the apartment as a tax credit.

[DawnC]

There is no deduction or tax credit for the use of the apartment.   You can claim the $500 Other Dependent Credit for both of them, so $1000 credit, if they qualify as qualifying relatives.   But, other than possible medical expenses (if you itemize) or education expenses, there is no deduction for having your parents or anyone else live on your property.   The tax credit that is available is the dependent tax credit (for adults) which is the $500 (per adult dependent) on Line 19 of your Form 1040.   

For Medical Expenses - Starting in 2021, the deduction applies only to expenses that exceed 7.5% of your income. So, if your AGI is $50,000, you can claim the deduction for medical expenses that exceed $3,750 ($50,000 × 7.5%).   And you have to itemize deductions.  

Claiming your parents on your tax return may allow you to claim the Head of Household filing status, which will lower you taxes if you are currently filing as a 'single' taxpayer.