Can child claim parent as dependent? (payments, taxes, dollars, income)

[VegasGrace]

I've done some research but still feel lost. In this situation, can the child claim the parent as a dependent on her taxes?

The child:
is an adult
works (in the military)
owns the home
the utilties/cable/water,etc in her name

The parent:
is disabled
hasn't been employed for 20 years
receives disability from the government
lives in the child's home


The little bit of information I've found says the parents income can't be more than a few thousand dollars, but disability is excluded.
Does anyone know for sure?


And is that 'all' disability excluded? Because there's SSI, SSD, VA, Workers Comp, Railroad, and the list can go on and on.

[MAtheBanker]

I believe you can, if you provided more than 50% of their support and they didn't make over $3,500.

It's consult a certified tax preparer, though. I'm a tax preparer, but not certified

[TKramar]

Originally Posted by VegasGrace

I've done some research but still feel lost. In this situation, can the child claim the parent as a dependent on her taxes?

The child:
is an adult
works (in the military)
owns the home
the utilties/cable/water,etc in her name

The parent:
is disabled
hasn't been employed for 20 years
receives disability from the government
lives in the child's home


The little bit of information I've found says the parents income can't be more than a few thousand dollars, but disability is excluded.
Does anyone know for sure?


And is that 'all' disability excluded? Because there's SSI, SSD, VA, Workers Comp, Railroad, and the list can go on and on.

As long as you're providing more than 50% of that parent's support. And the parent isn't providing more than 50% of his or her own support.

[sweetana3]

A parent does not have to live with you for the "relationship test". Generally, disability income is not included for the "gross income test". So you are pretty much left with the "total support" test.

You must provide over 50% of their total support. Fair rental value is part of the total support computation and the publication explains how to figure it. Publication 501 (Internal Revenue Service) has a workskheet you can use and discusses various questions you might have.

Basically you total up all her income and then compare it with what her support is for the year. Do you provide over 50%. Keep the worksheet with your records in case you are questioned.

[VegasGrace]

Wow! Sweetana3, thank you so much. I went to the IRS site, punched in the search for publication 501...on page 18 it talks about "total support"

and in the scenario I described, the IRS says
"If you provide a person with lodging, you are considered to provide support equal to the fair rental value of the room, apartment, house, or other shelter in which the person lives."......

So in this case, while the disabled parent is living in the home of the child- then the 'rental value' of the house, furnishings, along with the utility bills ....all these can be added to the amount the child spends on support for that parent. And if this exceeds more than what the parent spent...then yes.

Also, on page 17....gross income is any form of money that is not exempt from tax. So any disability payments, as long as they are not taxable...would not be counted as gross income.

Thanks again for your help.

[Submariner]

Pretty much the same criteria is used by the military too, so you can also get the parents ID cards and base privileges.

[sweetana3]

Vegas grace, do not confuse the "gross income test" with the "total support test". In the total support test, all money your parent spends on themselves from any source is counted, taxable or non taxable or even from savings. Social security income, disability income, savings, inheritance, etc. if spent by the parent on any kind of support item are counted.

The "gross income test" is a totally separate test and I believe a parent does not need to qualify under the "gross income test".

I just wanted to make sure you were clear since the quote you indicated from page 17 was for the gross income test.

[philpottcarl]

Dependent parents .. lots of information on DFAS>.Army Secondary Dependency Determination (http://www.dfas.mil/militarypay/usefullink/armysecondarydependencydetermination.html#c13 - broken link)