It’s been said that life comes full circle. Well, so do taxes.
It’s difficult to watch your parents grow old. The ones who supported you while growing up are now the ones you’re taking care of. You may be curious if you can claim your parents as dependents on your tax return like they once did for you.
The answer lies in the following five tests set up by the IRS:
#1. They must be related to you.
#2. They must be a citizen or resident of the United States, Canada, or Mexico.
#3. They must not be filing a joint tax return.
#4. They must have an annual gross income of less than $4,000.
#5. You must provide more than 50% of their financial support for the year.
With these qualifications in mind, let’s take a look at some special circumstances that might apply to you and your parents.
Can I claim my parent as a dependent if…
…they receive Social Security Retirement Benefits?
Yes. Your parent is receiving benefits for the time and effort they put in while on the workforce. This amount is not included in their gross income amount for the year. That means that Rule #4 above is still met even if their benefits come to more than $4,000 annually.
EXCEPTION: If your parent decides to go back to work after retiring, then that income could affect Rule #4 and Rule #5 above. Here’s how. If their income amount from the new job comes out to be more than $4,000 for the year, then you can not claim them as a dependent on your taxes. In turn, if they are providing more than 50% of their own support with the new job, then you cannot claim them as a dependent either.
…they receive Social Security Disability?
Yes. Millions of Americans each year enter into the Social Security Disability program because they are no longer able to work due to a medical condition. Disability is available to those whose condition is expected to last longer than 12 consecutive months (or already has). One can receive this benefit until they are either no longer disabled or have reached full retirement age.
EXCEPTION: You can claim your parent as a dependent on your tax return without their benefit being affected. However, Social Security benefits can limit any wage income they receive while on disability (ie: from another job they are employed with).
…they receive Supplemental Security Income (SSI)?
Yes. This is a program available to those who have a disability which makes them unable to work but don’t qualify for regular disability benefits. This also works a bit differently than the disability program mentioned above. While you can claim your parent on your return if they receive SSI, your 50% support may exceed their income requirement to qualify them for the SSI program in the first place. Why is that? It is a means-tested disability program.
…they have a job?
Maybe. This situation is becoming more and more common. Whether your parent is bored at home, needs the extra cash, or simply enjoys the workforce, they may have a new job. It’s important for them to realize that the income they are earning is taxable and now included in their gross income amount. When claiming your recently-employed parent as a dependent, you’ll need to keep in mind Rule #4 and #5 above. If their new job is earning them more than the $4,000 annual threshold, then you can no longer claim them as a dependent. If this also means that you are no longer providing 50% of their support, then claiming them is not an option for you. That being said, if you still pass the tests with flying colors, then enjoy your tax deduction!
Taxes can be confusing. So can Social Security benefits.
Combining the two can lead to hundreds of questions and one major headache. When the ultimate goal is to help out a parent who’s always cared for you, it’s tough to focus on money. However, if you fit the qualifications, then you’re entitled to a tax deduction. So let’s get down to filing that tax return. With RapidTax, our customer support team is ready to help you prepare those taxes; deduction or not.
If your mom lives with you and she is on social security. With no other income. Can you claim her as an exemption when she pays over half of her own expenses?
Helly Tammy,
You may not claim her if she pays over half of her own expenses; you must be supporting over half of her expenses.
IRS Publication 501
My question is: I receive social secrity disability benefits, medicare and medicaide no other taxable income due to health issues. My son moved in with me in February and pays more than 50% of my livng expenses rent, food, etc. Can my son claim me as a dependant on his taxes for 2017?
Yes, your son can claim you as a dependent provided that your annual gross income is less than $4000 and he provided more than 50% of your financial support for the tax year.
I have the same situation but my dad received $9004 a year in Ssdi so would I still be able to claim him since ssdi doesn’t count as income? Non taxable? I also answer yes to the question above beside the question about dad getting more than $4000.
My parents have medicare/medicaid + SNAP/foodstamps from government. I own a 2nd house and I pay for their basic needs, property-tax, utility. They have no other income.
Can I claim my parent as a dependent ? Do I need to report their foodstamp or medical help from government ?
thx in advance
You can claim your parents as dependents once you meet the IRS requirements which are as follows:-
You provided more than half of their support.
They made less than $4,050 in gross taxable income. (Social Security income generally doesn’t count here.)
They live with you (365 days in the year) or they are related to you.
They aren’t a dependent on someone else’s taxes.
They aren’t doing their taxes with a spouse (married filing jointly).
They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
According to the IRS, welfare benefits based on need are not taxable neither reportable on your tax return.
My husband only received SS
We had to file taxes because of the subsidies we got last year for health care. We moved in with our daughter before the yr. was up. Can she claim us as defendants? Would her income then affect Medicare or VA benefits? Thanks
Hi – Following on to this as I have a similar situation… The question I am unable to get an answer to is, Will claiming my mother who earns 0 income, but is on food stamps and medicaid affect her food stamps or medicaid? I just want to make sure by claiming her, I do not have the gov reduce or take away her food stamps or medicaid. Thank you!
I am amending my taxes I added my mother who I take care of. For the taxes it asks if she had any income for 2016. She receives SSA income. Do i include this on my taxes? (also she didn’t file for 2016 since I am claiming and taking care of her.)
Hello Teyalanae,
You can claim your mother if she meets all of the requirements to be a dependent. Her Social Security Benefit is considered her income. You do not show it on your tax return.
My father lives with me and earns less then the $4000 income limit from his pension a year. He also receives SS but I understand that SS is not part of the $4000 annual limit. My questions are if I claim him as a dependent after all these years, will the IRS audit me or him since he has not filed a tax return in years. Will this set off any red flags? Also, I live in CT. If I claim him as a dependent and he would need to go into a.nursing home in the future, would I be responsible for his medical expenses since I was claiming him as a dependent?
There will be no consequences for your father not filing prior returns if he only received social security benefits that were not taxable and he did not receive income from other sources. Further, you are not responsible for the debts of a dependent you claim on your tax return.