Legal Guardianship of my mom

[LA92]

In early summer, I was granted Legal Guardianship of my mom. Being new to this situation, I don't know how to go about tax filings. Does she still file on her own as she has normally done? Do I file on my own as I've been doing? Or is there a different filing process that I must follow? Do I claim her as my dependent? If so, how does this affect her assets/my assets? Per Probate Court in the county I reside, I am to be compensated monetarily for being her Legal Guardian (the issue will be addressed in a future court hearing). How is this reported? Is there a resource I can look into to help me understand all if this?

[Katherine S 63]

Great questions!!!

If your Mom is still working she might then file her own return.  It all depends on if she can be used as a dependent on your return or not.  Here is a nice IRS interview that might help you to determine if your Mother is now your dependent.  https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent  

If she is not, then she and you would just file your own returns.  If she is your dependent, then she could still file a return if it is needed but state that she is claimed on someone elses return.  (One example for her to file a return, while a dependent on your return, would be if she was going to get a refund).

You would then add her to your return as a dependent and add any other income you receive for being her legal guardian.  The agency sending out this money would give you a tax form to add to your return.  

Here is more information about claiming your parent:

https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34je...

Please give me a thumbs up if this was helpful.

Katie S.

[LA92]

Wow! You did a great job of explaining, but I'm still so confused! There certainly is no handbook when you become a parent's caregiver & Legal Guardian. I'll refer to the interviews & links to see which is the proper route to take. My mom is retired & considered disabled (hence, the Legal Guardianship). I just want to make sure I'm filing correctly because all this info has to be presented to Probate Court in an Annual Financial Report. 

[Katherine S 63]

Hi,

If you claim her, she would have to make less than $4700 (2023) in income.  Her social security would not be part of this calculation.  

If you can claim her, then you would get a $500 dependent credit and could claim any medical expenses (if they were high enough to itemized).  If you are single, then you would be able to file as Head of Household and this would raise your standard deduction from $13850 to $20,800 for 2023.

As far as all the forms, you might want to talk to a social worker and see if they have more information on what needs to be filed.  

Katie S