Can You Claim a Senior Citizen as a Dependent?
Navigate the IRS guidelines to determine if an elderly relative qualifies as your tax dependent and how to properly report them.
Claiming a senior citizen as a dependent for tax purposes is possible if specific Internal Revenue Service (IRS) criteria are met. Doing so can offer tax benefits, such as the nonrefundable Credit for Other Dependents.
Understanding Qualifying Relative Status
A senior citizen claimed as a dependent typically falls under the “qualifying relative” category rather than a “qualifying child.” For an individual to be a qualifying relative, they cannot be a qualifying child of any taxpayer. This means they must not meet the age, residency, or relationship tests that define a qualifying child, such as being under age 19 (or 24 if a student) and living with the taxpayer for more than half the year.
The individual must also satisfy either a member of household test or a relationship test. Under the member of household test, the person must live with the taxpayer all year as a member of their household. Alternatively, if they do not live with the taxpayer, they must be related in specific ways, such as a parent, grandparent, sibling, aunt, uncle, niece, nephew, stepparent, or in-law. For senior citizens, this often applies to parents or grandparents who may or may not reside with the taxpayer.
The joint return test requires the individual 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 no tax liability would exist for either spouse. Finally, the citizenship test requires the individual to be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.
Meeting the Support and Income Tests
The gross income test and the support test must be met. For the tax year 2024, the senior citizen’s gross income must be less than $5,050. Gross income includes all income from all sources not specifically exempt from tax, such as wages, taxable interest, and dividends.
The support test requires the taxpayer to provide more than half of the senior citizen’s total support. Support encompasses various expenses, including food, lodging, clothing, education, medical and dental care, recreation, and transportation. When calculating total support, all money spent by anyone for the dependent’s support, including the dependent’s own funds that are actually spent, must be considered.
If multiple individuals provide more than half of a person’s support, but no single person provides more than half, a “multiple support agreement” may allow one of them to claim the dependent. This agreement requires each person who contributed more than 10% of the support to sign Form 2120, Multiple Support Declaration.
Information Needed to Claim a Dependent
Before preparing a tax return, taxpayers must gather specific information and documentation for the senior citizen they intend to claim as a dependent. This includes the dependent’s full legal name, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), date of birth, and their relationship to the taxpayer.
Taxpayers also need documentation of the senior citizen’s gross income for the tax year. This may involve Social Security benefit statements, pension statements, or various Forms 1099 for investment income. Maintaining meticulous records for support calculation is also advised, including estimates or receipts for all expenses contributing to the senior citizen’s total support and all sources of support from others.
While the IRS does not typically require upfront submission of proof of residency if the senior citizen lives with the taxpayer, taxpayers should be prepared to substantiate it if questioned. Utility bills or a driver’s license showing a shared address can serve as evidence.
Claiming the Dependent on Your Tax Return
On Form 1040, the dependent’s information is entered in the “Dependents” section. This requires filling in fields such as the dependent’s name, SSN or ITIN, and their relationship to the taxpayer, along with checking the box for “Qualifying relative.”
Claiming a qualifying relative may enable the taxpayer to claim the Credit for Other Dependents. For the 2024 tax year, this nonrefundable credit can be up to $500 for each qualifying dependent.
Taxpayers can submit their return electronically through tax software or with the assistance of a tax professional, or by mailing a paper return. Retain all supporting documentation for at least three years after filing.