This article is at least ten years old judging from the fact that some of the comments are from ten years ago. Starting in 2018 there is no dependent deduction. The only possible tax benefit would be an itemized deduction for medical expenses that exceed 7.5% of income for the next two years and 10% after that.
We pay my MIL 400 dollars a month. Over time we've also paid for things like cell phones, housecleaning and other things to keep her from having to pay out of pocket. She doesn't live with us but if we didn't give her the money she would have a hard time making ends meet. None of the other siblings financially contribute. What I'm not sure about is how much money she gets from her monthly check...but I know it's not a lot. We don't like asking her her personal income amount but it is about 5000 dollars a year we are giving. I'd like to be able to take a write off, so I guess we should bring this up to our tax preparer. At the same time though, wouldn't this be considered "income" for her, and then the IRS would make her pay taxes on it?? Just curious.
Mom lives with me. Has dementia. Her income is $18k+ That helps with rent and her insurances, etc. Not much else. She receives a CSA-1099R for her retirement Annuity payments. Can I claim her as a dependent. She didn't live with me until Dec 2016 which cut the mileage and gas on my car.
My Mom and Dad have always lived by themselves in my childhood home. Last year I lost my mom. My dad is 81 and will not move from his home. I live 40miles away. He only has his income and a 250 usd pm retirement check coming in from his 401k. Both are directed straight to his bank account. Me and my wife pay all of his utilities from this. However we pay 20k more for upkeep on his home, Fuel / wear and tear on my vehicles traveling back and forth, Groceries and housekeepers. It is very difficult for me and my family. Can I claim him as a dependant to try a recover some of the cost.
Very Helpful, thank you. I am actually wanting to see if someone can lead me towards a list of daily functions/care there are for taking care of an elderly sister, 85 years old. Just even a guideline.
Living in Virginia, I was told I would be paid about a thousand dollars a month to provide care for my mother though Medicare. I sent in my hours for several months. Long story short I received six checks, as reported to irs I had 6000 as income, however my mother had a copay of one thousand per month. So I ended up with a stack of checks written to me for 00.00 dollars. I paid her copay, as it was deducted from my check. It is just one more crule act that comes from being a caregiver. You can not trust what anyone says, no matter who they are.
My 99 yr old mother lives in a senior residential care home, which I help pay for. Her SS income only covers a third of the cost, and I pay the balance. Can I claim her as my dependent on my tax return without affecting her eligibility of MediCal? She is current qualified under the Aged and Disabled Federal Poverty Level Program. I pay the care-home directly. Thank you, Helen
Our household income plunged enormously in the past three years, going from $400k to $150k and now Obamacare requires coverage for everyone. My mother-in-law, a widow, lives with us. She is not eligible for Medicare or Medicaid. She has about $750 a year (not a typo) of income that goes to her other children. My wife and I provide for all of her living expenses, which is fine, but we cannot currently afford the $6,000 a year for Obamacare for her. We just don't have it. All of our former savings is sunk in our business to keep it afloat and we are living month to month and cannot reduce expenses without costing us money up front that we don't have (like moving). We have assets, but not liquid. What we do not have is income that exceeds expenses and there is little we can do about that on the expense side.
If she had a job and made $4,000 or got married, that would relieve us. But that is unlikely.
Can we pay her $4,000 for child care and housekeeping, then charge room and board? We can easily show the expense side of the room and board exceeds that, so we have no net income, but that she is paying more than 50% of her living expenses.
my mother has $170,000 in trust plus a second home also in trust worth $300,000 now she plans to sell a home in Florida and receive about $200,000 may I claim her as a dependent
My mother is receiving monthly house payments from my nephew who bought her house when she moved in with me. Does this money count as income against the $3800 limit?
If I and my 81 years old elderly parents meet all the criteria from the IRS so that I can claim them as dependents, does this in any way jeopardize their ability to qualify for Medicaid?
We have been forced to give up much of our lives (working) to care for them. For myself, I have given up a long career as preschool teacher to be on hand for mom. She cannot live alone anymore so we live together and I work pt as a housekeeper to have the flexibility to care for her. We live mostly on her SS while I assume misc expenses (i.e. food, and some utilities). Her income is considered my part payment that she would otherwise have to pay a caregiver to live with her. She cannot afford assisted living. I have had no one mention to me being eligible for any kind of monetary payment from the county or state. I live in California. What agency should I be talking with?
I'm married joint filing tax with my husband. My parents live with us for 12 yrs. I'm taking care of my mother who is 76, disabled, received SSI $208 per month. My father is 75, retired, worked 12 yrs, received SS benefits $414 per month. My father retired last year 2013 and only works 2 months with gross income of $1,200. My father filed tax of his own for 2012. Now, can we claim my parents as dependents on filing tax? Your answer/comments are very much appreciated. Thank you.
My mother is living with me & she gets a check form SS and a Va check. She does not give me money I pay for all of her living and I can not work. she is has her check book locked up and I have to ask her for help I am on her accounts. how do I handle this. and can I claim her on my Taxes. She makes more then 3,800 month . What can I Claim.
My mum is 71 years old and has come to live with me. I am a single parent and am struggling to keep my head above water. I have 2 children and now have to live in a 4 bedroom house not a 3 bedroom. Rent is higher and food has doubled, hydro too. I don't want to worry my mum but need to get some sort of financial help or I am going to sink, I am physically and mentally exhausted and stressed with worry, I need some advice please, thanks x
We do not pay her any money and she does not pay us any money we just take care of all of her bills. She only gets $16,000 a year in Social Security. Do I need to claim her income? And what she's worried about is will it take away any of the monthly monies she does get?
My wife and I are taking care of (financially) my mother-in-law's bills /rent/ food and have been all year long 2013, but she does not live with us , she lives only a few doors down from us in a retirement community in Arizona. Can I take her as a dependent in 2013? And will that affect her Social Security payment that she receives?
Yes, if you have a formal arrangement with your mother than you should be reporting the income. First she and you need to decide whether to treat it as an independent contractor or as an employer/employee. Your tax preparer can help with this. If you treat it as an independent contractor, you will need to claim the income as self employment income. You may be able to get an exception from paying self employment taxes because you are caring for a relative. If you treat it as an employer/employee arrangement, your mother will need to withhold payroll taxes from your pay and report it on her own tax return. You will report wages on your own tax return.
My mother is paying me $1100.00 to care for her 24/7. She and I live in the home of my sister. Do I declare the money she gives me for taking care of her as income for taxes? If so, how do I state the income (she does not take out taxes or give me a W2, I am not "self-employed" doing this, this money is not undeclared tips)? And finally what do I do about state, federal, and social security taxes?
This does occur more regularly than you can imagine, because otherwise it is diffucult to find care faciilties willing to "take the chance" that the money will run out. Also some of the states have specific rules regarding debts of the deceased and types of debts. I would check with a good accountant about the deductibility by your brother on HIS taxes if he was legally responsible for over 50% of her support during her last year of life. I don't think you would have a claim, but could "gift" him the money to help after all the calculations re done by the accountant to see his actual out of pocket cost if he can deduct the payment. Good luck and keep us posted!
Thanks for your comment! My brother apparently signed papers when she needed to go into assisted living stating that he would be responsible if she couldn't pay. Once they ran through all her annuities, it got really tough and now they are hounding him mercilessly and we just have to help.
My mom was in assisted living before she passed in 2011. She is considered to have "no estate" because she left no real estate. My brother and I inherited only an annuity, split 50/50. She owed 15,000 to the nursing home at the time of her death, and we are both pitching in all of our income from the annuity to pay off this debt. Is there some way we can deduct this "income" from our taxes?
My husband, child and I moved in with my parents last year to care for them. We provide 24hr support. We cook, clean, do laundry, pay mortgage, cable, and food. We renovated part of the house to accommodate us moving in. We renovated the back yard with a walking path so they can walk outside. What kinds of deductions can we claim?
I take 100% care for my elderly mum i.e. she lives in my home and I cover all her expenses. She does not have any income. I have been claiming her as a dependent and this has been fine with IRS. I have read that I can offset my taxable income by apportioning lodging & living expenses to her but I donot know under which category or line item on 1040 this goes under. Please help!
54 Comments
First Oldest
First
Can I Claim My Elderly Loved One as a Dependent on My Taxes?
Her SS income only covers a third of the cost, and I pay the balance. Can I claim her as my dependent on my tax return without affecting her eligibility of MediCal? She is current qualified under the Aged and Disabled Federal Poverty Level Program. I pay the care-home directly. Thank you, Helen
Our household income plunged enormously in the past three years, going from $400k to $150k and now Obamacare requires coverage for everyone. My mother-in-law, a widow, lives with us. She is not eligible for Medicare or Medicaid. She has about $750 a year (not a typo) of income that goes to her other children. My wife and I provide for all of her living expenses, which is fine, but we cannot currently afford the $6,000 a year for Obamacare for her. We just don't have it. All of our former savings is sunk in our business to keep it afloat and we are living month to month and cannot reduce expenses without costing us money up front that we don't have (like moving). We have assets, but not liquid. What we do not have is income that exceeds expenses and there is little we can do about that on the expense side.
If she had a job and made $4,000 or got married, that would relieve us. But that is unlikely.
Can we pay her $4,000 for child care and housekeeping, then charge room and board? We can easily show the expense side of the room and board exceeds that, so we have no net income, but that she is paying more than 50% of her living expenses.
now she plans to sell a home in Florida and receive about $200,000
may I claim her as a dependent
Yes, if you have a formal arrangement with your mother than you should be reporting the income. First she and you need to decide whether to treat it as an independent contractor or as an employer/employee. Your tax preparer can help with this. If you treat it as an independent contractor, you will need to claim the income as self employment income. You may be able to get an exception from paying self employment taxes because you are caring for a relative. If you treat it as an employer/employee arrangement, your mother will need to withhold payroll taxes from your pay and report it on her own tax return. You will report wages on your own tax return.