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My grandmother moved in with me and my family. My aunt is over her finances and pays me $2000 every month. How much should I put back for taxes and can I claim her as dependent? She has been diagnosed with dementia and bipolar. This is very new to me

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Gosh, I don’t know. Can you contact an accountant in your area to advise you?
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You can’t claim her as a dependent unless you are providing at least half of her financial support. If she’s paying you $2k a month then it’s highly unlikely she qualifies as your dependent.
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The other thing you have to consider...If the $2000.00 is more than what is needed for her expenses you will need to declare the remaining portion as income for yourself.
If there are 3 of you in the household divide all household expenses by 1/3 and that would be her portion. So mortgage, insurance, garbage, sewer, water part of the cable bill if all she does is watch TV,(all of it if she uses internet if that is bundled.) You can take mileage when you drive her to the doctor or other appointments. But anything above that is your income. (pay for caring for Grandma) And by the way if it is not much you may want to reconsider the amount and if you are doing all the caregiving pay yourself the going rate for caregivers. And your Aunt could possibly be declaring that as a medical expense on Grandma's taxes if she needs full time care. This should be discussed with a GOOD tax preparer and possibly an Elder Care Attorney and I am guessing you have one, or Auntie does
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