Can I Claim My Disabled Mother as a Dependent

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Steps to Challenge an Elderly Parent as a Dependent

Updated for Tax Year 2022 • July 24, 2022 01:38 PM

OVERVIEW

If y'all cared for an elderly parent, your parent may qualify as your dependent, resulting in boosted tax benefits for yous.

For data on the tertiary coronavirus relief package, delight visit our "American Rescue Plan: What Does it Mean for You and a 3rd Stimulus Cheque" blog post.

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The kickoff matter that frequently comes to mind when considering dependents is the parent/child relationship. But if yous cared for an elderly parent, your parent may qualify equally your dependent, resulting in additional tax benefits for you. Once you determine that both of you meet IRS criteria, you can claim your parent as a dependent on your tax return.

Income limitation

Your parent must commencement meet income requirements set past the Internal Revenue Service to exist claimed as your dependent. To qualify as a dependent,

Your parent must not have earned or received more than than the gross income test limit for the tax year.
This amount is determined by the IRS and may change from year to yr.
The gross income limit for 2022 and 2022 is $4,300.
By and large, you practise non count Social Security income, but there are exceptions. If your parent has other income from involvement or dividends, a portion of the Social Security may as well be taxable.

Back up requirement

Yous must have provided more half of your parent's back up during the tax year in club to merits them equally a dependent. The corporeality of support you provided must also exceed your parent's income by at least one dollar.

When determining the budgetary value of the amount of support you provide, you need to consider several factors:

Calculate the fair market value of the room your parent occupies in your abode. Ask yourself how much rent you lot could accuse a tenant for the space.
Consider the cost of food that you provide.
Remember to include utilities, medical bills and general living expenses that you also pay.
Compare the value of support you provide with whatsoever income, including Social Security, that your parent receives to determine whether you encounter the support requirements.

Deducting medical expenses

If you paid for your parent's medical care, you may be able to claim medical expenses equally an itemized deduction on Schedule A. Itemized deductions are beneficial when they exceed the amount of the standard deduction you are allowed to claim.

You can deduct your parent's medical expenses even if she does not meet the income requirement to be claimed as your dependent as long every bit you provide more than that one-half of their support.
Your total medical expenses, including all costs for prescription drugs, equipment, infirmary intendance and doc's visits, must exceed 7.five percentage of your adjusted gross income to merits these expenses in 2022 and 2021.

Dependent care credit

For 2020, the Child and Dependent Care Credit is a non-refundable revenue enhancement credit. It can be claimed by taxpayers who pay for the care of a qualifying private and meet certain other requirements.

If your parent is physically or mentally unable to intendance for themselves, they are a qualifying individual.
You demand to accept earned income and piece of work-related expenses. This means that the care must have been provided while you were either working or looking for work.
You must be able to properly identify your intendance provider. This includes giving the provider's name, address and identifying number (either Social Security number or employer identification number).
If you are married but file a separate return from your spouse, yous may not merits this credit.

For 2021, the American Rescue Plan brings significant changes to the amount and mode that the Child and Dependent Intendance Credit tin can be claimed. The programme increases the amount of expense eligible for the credit, relaxes the credit reduction due to income levels, and also makes it fully refundable. This means that, unlike other years, you lot can yet get the credit even if you don't owe taxes.

So, for revenue enhancement year 2022 (the taxes y'all file in 2022):

The amount of qualifying expenses increases from $3,000 to $8,000 for 1 qualifying person and from $6,000 to $16,000 for two or more qualifying individuals
The percentage of qualifying expenses eligible for the credit increases from 35% to l%
The offset of the reduction of the credit is increased from $15,000 to $125,000 of adapted gross income (AGI).

Also for tax yr 2021, the maximum corporeality that can be contributed to a dependent intendance flexible spending account and the amount of tax-free employer-provided dependent care benefits is increased from $five,000 to $x,500.

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The above article is intended to provide generalized financial information designed to brainwash a wide segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should ever seek the assistance of a professional who knows your particular situation for communication on taxes, your investments, the law, or whatsoever other concern and professional matters that affect y'all and/or your business concern.

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Source: https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34jePeT9

Can I Claim My Disabled Mother as a Dependent