I live with my parents and take care of them as my father is handicapped. My mom receives Social Security and my Dad is a disabled vet and receives SS & Disability. The house is in my parents name and I can't be added because it is a VA loan, but I'm on the deed. I pay over 65% of the household expenses (mortgage, utilities, groceries, etc.). When they file their taxes they do not have any taxable income or assets to claim and do not have a refund. Can I claim them?
It depends.
Your parent must first meet income requirements set by the Internal Revenue Service to be claimed as your dependent. To qualify as a dependent, your parent must not have earned or received more than the exemption amount for the tax year. This amount is determined by the IRS and may change from year to year. Current exemption amounts can be found in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Generally, you do not count Social Security income, but there are exceptions. If your parent has other income from interest or dividends, a portion of the Social Security may also be taxable.
You must have provided more than half of your parent's support during the tax year in order to claim them as a dependent. When determining the monetary value of the amount of support you provide, you need to consider several factors.
Calculate the fair market value of the room your parent occupies in your home. Ask yourself how much rent you could charge a tenant for the space.
Next, consider the cost of food that you provide. Don't forget to include utilities, medical bills and general living expenses that you also pay. Compare the value of support you provide with any income, including Social Security, that your parent receives to determine whether you meet the support requirement. The amount of support you provided must exceed your parent's income by at least one dollar.
It depends.
Your parent must first meet income requirements set by the Internal Revenue Service to be claimed as your dependent. To qualify as a dependent, your parent must not have earned or received more than the exemption amount for the tax year. This amount is determined by the IRS and may change from year to year. Current exemption amounts can be found in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Generally, you do not count Social Security income, but there are exceptions. If your parent has other income from interest or dividends, a portion of the Social Security may also be taxable.
You must have provided more than half of your parent's support during the tax year in order to claim them as a dependent. When determining the monetary value of the amount of support you provide, you need to consider several factors.
Calculate the fair market value of the room your parent occupies in your home. Ask yourself how much rent you could charge a tenant for the space.
Next, consider the cost of food that you provide. Don't forget to include utilities, medical bills and general living expenses that you also pay. Compare the value of support you provide with any income, including Social Security, that your parent receives to determine whether you meet the support requirement. The amount of support you provided must exceed your parent's income by at least one dollar.