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New Member
posted Mar 21, 2020 5:56:57 PM

Claming parents as dependents and IHHS

I am claiming my parents as dependents as well as my brother who has special needs.  We all live together. My dad is retired. My mom receives  IHHS ( In-home support services for caring for my brother. I'm aware that wages received by IHSS providers who live with the recipient are not considered as gross income. My mother received a W-2 and she will file taxes (as married)  to report the income as non-taxable. Can I still claim my mom and my dad even if they file to report the IHHS income and report that they can be claimed as a depended by someone else? Last year, my taxes were rejected  because we both listed my dad in each of our taxes. My mother listed him as her spouse and I did as a dependent (parent).  I want to file the taxes properly. Any advice is very much appreciated. Thank you.

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2 Replies
Employee Tax Expert
Mar 21, 2020 6:15:36 PM

You cannot claim your parents as dependents because they are filing their return as married filing jointly.  

 

See the attached for more information on the requirements to claim someone as a dependent on your return.

 

Dependent qualifications

New Member
Apr 13, 2020 7:59:43 PM

Thank you for the response. I just want to make clear that even though IHSS payments are nontaxable because my mom lives with my disabled brother I still can't  claim her?  I followed the instruction below (from turbo tax) since she did not have a corrected form.

 

If these payments are paid to you in box 1 of form W-2 (they should not), first try to get a corrected Form W-2 from the payer. If you cannot get a corrected Form W-2, follow these steps: 

Do not enter the W-2 in the Wages & Salaries topic. Instead enter it as Other Reportable Income under the Miscellaneous Income section. Take the following steps: 

  1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);
  1. Click on Federal Taxes at the top of the screen;
  2. At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;
  3. Scroll down the page to the last section titled: Less common Income and click show more;
  4. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
  5. Scroll down to the last option titled Other reportable income and select start or edit;
  6. When it asks, "Any other reportable income?" say yes then you will make two entries:
  7. Your first entry description would be W-2 EIN # (enter EIN number from W-2) Box 1 Medicaid Waiver Payments, and enter the Box 1 amount as a positive number.
  8. Next you click "Add Another Miscellaneous Income Item," and enter this description: IRS Notice 2014-7 excludable income and enter the W-2 Box 1 amount as a Negative (-) number.