Can I claim my parents who own the IRS money? They both live with me and are both unemployment. Will I a penalized for what they owe?

[xmasbaby0]

No---claiming your parents as dependents does not obligate you to pay their debts to the IRS or state.  But....in order for you to claim them they must meet the criteria to be claimed as someone else's dependent.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent  

They *might* be your qualifying relative dependents:

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,700 in 2023.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

[Carl]

Your parents would have to qualify under the "qualifying relative" rules for you to claim them. See those rules at https://apps.irs.gov/app/vita/content/globalmedia/table_2_dependency_exemption_relative_4012.pdf

[DoninGA]

The IRS cannot seize your tax refund or any of your assets for the debts of a dependent.

You may be able to claim them as dependent under the Qualifying Relative rules if they meet all the requirements under the rules.

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 $4,700 (social security does not count) in 2023
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.