Claiming parents as dependent

[mainhoon]

Here are the details:

- Parents are Green Card holders. Father earns an Indian pension and some other income from rental investments in India. 

- They spend most of their time with me in the US and I support them.

Can I claim them as dependents on tax return?

I read that they need to make < $4050, so I will check on that. Assuming that they do, and I add them as dependents, what happens then -

> The exemption amount goes up for me? And potentially less taxes

> Do they still need to file a return?

Thanks!

[SweetieJean]

Their income (not just earnings) must be less than $4,050. So count the pension  and rental income toward that.

[viktoriyab11 · Accepted solution]

Yes, you can claim your parents if they don't make more than $4,050 and you provide more than half of their support.

Yes, by claiming them, you will receive hire exemption amount which will reduce your taxable income.

Your parent can file their own tax return even if you claim them but they will not be able to use their exemption amount (see filing requirement below). 

Who Can I Claim As a Dependent? https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/family/who-can-i-claim-as-a-dependent-...

Do I need to file a federal return this year?

[mainhoon]

I guess I am wondering why would I claim someone as a dependent and get the exemption while the dependent now has to file their own taxes and loses the exemption.. Doesnt the dependent lose out on the exemption in this case?