Is it beneficial to include my mother in my tax filing or does she have to file her own taxes?

[avdelar1]

My mother lives with me, my wife, (Wife and I have a combined salary of approximately $110,000) and my two children. I gave my mother a monthly allowance in cash that ranged between $1000 to $1200 per month for the Second half of the year (2018); this allowance helped her cover her personal and medical expenses. We also provide her with shelter, food, and all living expenses; I think it's worth mentioning that she does not have medical insurance. She also earned a $10,300 income for having work the first part of 2018 which she couldn't maintain for having arthritis; her hands hurt when carrying heavy items.

[VolvoGirl]

Well she has to file her own return for her income.  And you can not claim her as a dependent on your return since she had over $4,150 income.  Sorry.  She probably has to pay the penalty for not having health insurance.  @TaxGuyBill are you a health expert?

[TaxGuyBill · Accepted solution]

As VolvoGirl said, you can not claim her as a dependent because her income is over $4,150.

If she only has $10,300 of income (your gifts to her don't count), she won't owe any penalties for not having health insurance.

[avdelar1]

Can I deduct any of the gifts to my mother (cash, and all living and medical expenses) in my tax filing?

[TaxGuyBill]

No, gifts to individual people are not a tax deduction.

[avdelar1]

Ok. Thanks.