Can I Claim My Grandmother as a Dependent on My Taxes?

Determining whether you can claim your grandmother as a dependent on your taxes is an important consideration that could reduce your taxable income and increase your tax refund. This decision requires careful evaluation of specific IRS criteria to ensure compliance with tax laws while maximizing potential benefits.

Relationship Criteria

To claim your grandmother as a dependent, the IRS requires that specific relationship criteria be met. For the 2024 tax year, grandparents, including grandmothers, are explicitly listed as qualifying relatives. This relationship must have existed for the entire tax year, ensuring consistency and permanence.

Residency Requirements

A qualifying relative must live with you for more than half of the tax year. For instance, if your grandmother resides with you from January to September, she satisfies this requirement. Temporary absences, such as hospital stays, do not disrupt residency if there is intent to return. Exceptions apply for nursing home stays due to medical reasons, provided you can substantiate the temporary nature with documentation like medical records.

Financial Support Factors

You must provide more than half of your grandmother’s total financial support, including housing, food, and medical care. Detailed records, such as ledgers of expenses like rent and groceries, are essential to verify this. The IRS also considers her income from other sources, such as Social Security benefits, when calculating total support. Your financial contributions must exceed her own.

Income Threshold

Your grandmother’s gross income must fall below $4,700 for the 2024 tax year. Gross income includes wages, dividends, rental income, and interest, but Social Security benefits are generally excluded unless they significantly contribute to her support. Knowing what qualifies as gross income is crucial for determining eligibility.

Documentation to Substantiate Claim

Proper documentation is critical to establish eligibility. Maintain records, such as bank statements and receipts, to prove you provided more than half of her support. For shared household expenses, break down contributions to clarify your role. Residency documentation, such as lease agreements or property tax records, can confirm her living situation. If exceptions apply, such as nursing home stays, facility invoices or correspondence verifying temporary status are necessary. Income records, including 1099 forms and Social Security statements, ensure her income meets IRS requirements. Accurate records are key to compliance with tax regulations.