Parent as a dependent

[Kjntxn]

Can I claim my Mother-in-Law as a dependant on my taxes? She only collects disability, and my wife and I cover living costs (she lives with us) and most of her bills.

[xmasbaby0]

If your MIL has less than $4700 of income -- not including any Social Security -- and you are paying over half of her support, you may be able to claim her as a qualified relative.  You will get the $500 credit for other dependents.

CREDIT FOR OTHER DEPENDENTS

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

[Opus 17]

1. She must have less than $4700 of taxable income.  Disability may or may not be taxable, depending on who is paying it.

2. You must pay more than half her total support.  Remember that even if the disability and social security are not taxable, they count as support she provides herself.  You need to add up the value of all the support she receives and determine if you paid more than half.  There is a worksheet in publication 501 that can help with this. Support includes a portion of your home rent, utilities and food, plus her costs for entertainment, medical, etc. https://www.irs.gov/pub/irs-pdf/p501.pdf

3. She can't file a joint return with a spouse, except in special circumstances.  If she is married, she will generally have to file married filing separately, as will her spouse.

4. For a parent, she does not have to live with you.  But if she does live with you, part of your household costs count as support provided by you to her. 

[NCperson]

@Opus 17 - it is not 'taxable income' - that infers Line 15 after the standard deduction.

it's gross income , not including social security.  See page 11 on the right: 

https://www.irs.gov/pub/irs-pdf/p501.pdf

The person's gross income for the year must be less than $4,400

that is for 2022; for 2023 it's $4700

[Opus 17]

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@NCperson wrote:

@Opus 17 - it is not 'taxable income' - that infers Line 15 after the standard deduction.

it's gross income , not including social security.  See page 11 on the right: 

The problem is that "gross income" is used in different ways.  A scholarship is gross income, but it is not taxable and does not directly impact the dependent qualifications.  See Table 1. 

"Gross income means all income you receive in the form of money, goods, property, and services that isn't exempt from tax,"

Specifically here, disability is gross income (meaning all income) but it might or might not be "income that isn't exempt from tax" depending on who is paying out the disability benefit.