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

Claiming a parent as a dependent on your tax return can offer tax benefits, but it requires meeting specific Internal Revenue Service (IRS) criteria. This process demands adherence to several tests designed to determine dependency for tax purposes. This article clarifies the IRS requirements for claiming a parent as a qualifying relative.

Understanding Qualifying Relative Rules

To claim a parent as a dependent, they must qualify as your “qualifying relative.” The IRS sets out several conditions that must be met for an individual to be considered a qualifying relative.

First, the individual cannot be your “qualifying child” or the qualifying child of any other taxpayer. Qualifying child rules typically apply to children under a certain age, often residing with the taxpayer, which is usually not the case for a parent. This distinction is important because the tax benefits for a qualifying child differ from those for a qualifying relative.

Next, the gross income test requires that the parent’s gross income for the tax year must be less than $5,050 for 2024. Gross income includes most income received, though certain non-taxable income, like some Social Security benefits, may not count towards this limit.

The support test mandates that you must provide more than half of the parent’s total support for the year. This involves comparing your contribution against all other sources of their support, including their own funds.

The member of household or relationship test specifies that the person must either live with you all year as a member of your household or be related to you. Parents, grandparents, and other direct ancestors do not need to live with you to meet this test. If the person is not related, they must live with you for the entire tax year.

The joint return test stipulates that the parent cannot file a joint tax return for the year. An exception exists if the joint return is filed solely to claim a refund of withheld income tax or estimated tax paid, and neither the dependent nor their spouse would have any tax liability if they filed separate returns.

Finally, the citizenship test requires the parent to be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.

Calculating the Support Test

Determining whether you provide more than half of a parent’s total support involves a detailed calculation of all contributions to their living expenses. Total support includes amounts spent on various necessities.

Support generally includes expenses such as food, lodging, clothing, education, medical and dental care, recreation, and transportation. If you provide lodging, the amount of support is the fair rental value of the room or portion of the home they use. This fair rental value is used instead of actual expenses like mortgage payments or utilities. If the parent also contributes to their own lodging, the fair rental value is divided proportionally.

Certain items are not included when calculating total support. These include federal, state, and local income taxes paid by the person from their own income, Social Security and Medicare taxes, life insurance premiums, and funeral expenses. Scholarships received by a student are also not counted as support provided by the student for themselves.

A parent’s own funds are considered support only if they are actually spent for their support. For example, if a parent receives Social Security benefits, only the portion used for living expenses counts towards their contribution. Any amounts saved are not included. You must compare your total contributions to the parent’s total support from all sources to ensure you provided more than 50%.

In situations where multiple individuals collectively provide more than half of a parent’s support, but no single person provides over half, a multiple support agreement may be used. IRS Form 2120 is filed in these cases. This form allows one eligible person who contributed at least 10% of the support to claim the dependent, provided all other eligible contributors who gave at least 10% agree not to claim the dependent.

Claiming the Dependent and Related Tax Aspects

Once eligibility for claiming a parent as a qualifying relative is established, taxpayers can access several tax benefits. These benefits can reduce overall tax liability and provide financial relief. The primary tax benefits include the Credit for Other Dependents, potential Head of Household filing status, and the ability to include certain medical expenses.

The Credit for Other Dependents is a nonrefundable credit that can be claimed for qualifying relatives who do not qualify for the Child Tax Credit. For the 2024 tax year, this credit is generally $500 per qualifying dependent. This credit begins to phase out for taxpayers with higher incomes, specifically when adjusted gross income exceeds $200,000, or $400,000 for those married filing jointly. This credit is reported on Schedule 3 (Form 1040).

Claiming a parent as a dependent can also allow a taxpayer to qualify for the Head of Household filing status, provided all other requirements are met. To qualify, you must be unmarried or considered unmarried on the last day of the tax year and pay more than half the cost of keeping up a home. A dependent parent does not necessarily need to live with you to qualify you for Head of Household status; you must pay more than half the cost of keeping up their home for the entire year. This filing status typically offers a larger standard deduction and more favorable tax rates compared to filing as single. For example, the 2024 standard deduction for Head of Household filers is $21,900.

Additionally, taxpayers who itemize deductions may be able to include medical expenses paid for their qualifying relative when calculating their medical expense deduction. You can deduct the amount of unreimbursed medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI). This deduction is claimed on Schedule A (Form 1040).

While claiming a parent as a dependent offers tax advantages, it is important to consider any potential impact on the parent’s eligibility for government benefits, such as Medicaid. Generally, claiming a parent as a dependent on your tax return does not directly affect their Medicaid eligibility. However, if the value of Medicaid services received by the parent exceeds half of their total support, you may not be able to claim them as a dependent under the support test.