Can I put my mother on my taxes since I've been caring for her? She only gets like $1000 a month in SS and 70$ in a pension. I pay her household bills with her checks. I'm POA and sometimes I use her checks for grocies and sometimes I pay grocies. She doesn't file taxes since her pension ends up being only @800 a year, but this year we had to take out her CDs to pay for skilled care after Medicare stopped at 25 days (I did appeal won one, but lost the next) . So would I be able to put her on my taxes?

I would talk to a tax expert in your state, there are a lot of new rules for 2018 and it is well worth the money to use a pro.

JoAnn it depends on what type of IRA, not all are taxable.
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Reply to Isthisrealyreal

IRAs and CDs are two different things.

CDs you pay taxes on the interest yearly. With her income she probably has been told that she no longer pays taxes. CDs don't yield all that much interest anymore so you are probably safe there.

IRAs are deferred. Meaning no taxes are paid until the IRA is cashed in. This is where income tax will need to be paid.

I think this is how it works. With claiming as a dependent, you have to be paying over 50% for her care. So say it cost 10k a year to care for her, You have to be paying over 5k of the 10k. But like said her income maybe too high anyway. This is really a question for a tax preparer or a CPA.
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Reply to JoAnn29
worriedinCali Dec 13, 2018
Her mother’s social security income ia too high, she can’t claim mom as a dependent. That’s not a question that needs a tax preparer or accountable. But for what it’s worth, I used to be a tax preparer. The amount may change for 2018 taxes but for 2017, if your gross income was over $4,050 you can’t be claimed as dependent. Moms social security is $12,000.
The new stupid tax law, took away alot of write-offs so there are no exemptions any more just a higher standard deduction. Elderly dependent credits were eliminated for 2018.

Social security of less than $25k is considered non taxable income but the pension and interest on the cds would be taxable so you need to wait for the 1099-int. There are dependency tests if you are thinking about claiming head of household.

Your best bet is to go to the IRS website and look up VITA. Put in your zip code and meet with one of the preparers over the situation.
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Reply to tacy022

No you can’t. She earns too much. She earns $12,000+ a year which makes her ineligible to be your dependent.
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Reply to worriedinCali

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