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Parent as dependent?
My parent lives in a house that I own and maintain, but not my residence. Does that quality my parent as a dependent or as living with me?
Thanks!
@Shoop1 wrote:
The parent just retired this year but the income prior to retirement was over $4300. Assuming the other qualifications provided are appropriate, would the parent qualify as a dependent in terms of the house ownership scenario? Thanks again!
If the parent has gross income of $4,300 or more in 2020 then you cannot claim them as a dependent on your 2020 tax return.
Your parent can be your dependent if they had less than $4300 of taxable income for 2020 AND if you provided more than half their total living support. The $4300 figure will rise each future year with an inflation adjustment.
For this year and every future tax year, you have to consider both their taxable income and their total living expenses. You get credit for the fair market rental value of the home that you provide as support you provide. If you provide any other support, such as food or a financial allowance, that also counts as support that you provide. Support that they provide themselves includes money that they spend from savings or from investments or from Social Security. (Remember that even though Social Security may not be taxable income for the income test, it is always support they provide themselves for the support test.) support provided by other people, such as charities or the government, does not count as support provided by you or provided by them self. You must add up their total living expenses and determine whether you provided more than half the total of their support.
