As our aging parents get older they come to be more and more reliant on their children for just about everything. If you pay for most of your elderly parents living expenses, or maybe if they even live with you, you may have wondered either or not you can claim them as a dependent when filing your taxes. If so, you'll receive an further personal tax exemption as well as the capability to receive healing expense deductions that your aging parent may not qualify for on their own because of their low tax bracket.
Well, to respond your question, yes you can claim them as a dependent under certain circumstances which I'll be discussing in this article today.
2010 Tax Brackets
Generally speaking, to claim your parents as a dependent for tax purposes you need to meet the following list of conditions...
First of all your parent must be a member of your household, or at least have some sort of house relationship to you. Standard house relationships contain father, mother, father in law, or mother-in-law in the eyes of the Irs.
Next, your parent must make less than ,350 a year in gross income as of some years ago. This figure will convert every year, so make sure that you check with your accountant to see what this year's actual number is. As long as your parent makes less than that amount, you're good to go.
Next you have to supply, or have supplied, more than one half of the retain needed by your parent within the last calendar year. These things contain healing expenses, so that if you are paying their healing bills (which can be highly expensive) you should be okay.
Next if you have a brother or sister who is also paying some of the retain for your aging parent pay concentration to this one. Imagine you and your siblings all chip in and together you pay more than the 50% of your parents retain deemed critical by the Irs... In that case you Are eligible to claim them as a dependent, but only one of you is eligible. So if you have four brothers and sisters and they all chip in, one of you gets to claim the deduction.
Next your parent has to be a Us people or a least a resident or national that resides in America for some part of the year. They may also be a resident of Mexico or Canada.
Finally, your parent can't file a joint tax return. There are a couple of exceptions... One they can file a joint return if it's only for the purpose of getting a tax refund. Also, they can file a joint return if they have no tax due.
Claiming your parent as a dependent can be a in effect good tax deduction, and it can save you an huge number of money especially over time. Be sure to check with your accountant or Cpa beforehand to make sure that you meet all the requirements placed by the Irs.
How to Claim Your Parents As Dependents on Your Taxes
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