Is social security considered gross income - I am trying to determine of I can claim a parent as a dependant

[DoninGA · Accepted solution]

No. Social Security is not considered gross income under the Qualifying Relative rules.  However, the SS income can be used for the support of the individual when calculating who provided over one-half of the support to the individual.

Use this IRS worksheet for determining support - https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

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 $4,050 (social security does not count) in 2016

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.

[LTN]

What happens if you're claiming a Parent who receives SS income AND a little retirement from a 401k that exceeds the "Income" allowable to be claimed as a Qualifying Relative, but the Parent does NOT provide more than 1/2 of their living expenses, ie, that had to move in with their adult child because they cannot afford rent on their own, coupled with they have some existing health issues that causes them to be dependent on the adult child(Not being able to drive due to poor eyesight), to do day to day things.

[DoninGA]

---

@LTN wrote:

What happens if you're claiming a Parent who receives SS income AND a little retirement from a 401k that exceeds the "Income" allowable to be claimed as a Qualifying Relative, but the Parent does NOT provide more than 1/2 of their living expenses, ie, that had to move in with their adult child because they cannot afford rent on their own, coupled with they have some existing health issues that causes them to be dependent on the adult child(Not being able to drive due to poor eyesight), to do day to day things.

---

For tax year 2019, if they have gross income of $4,200 or more then no one can claim them as a dependent.  Whether they provided over one-half of their own support is not relevant under the Qualifying Relative rules if their gross income in over the limit for claiming them as a dependent.

You can however, claim any medical expenses you paid on their behalf even though you cannot claim them as a dependent.

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 $4,200 (social security does not count) in 2019
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.

[VolvoGirl]

You don't count the SS income but if the other income is more than 4,200 you can not claim them.  Sorry.