Have a Dependent Elderly Parent?

For a large chunk of your life, your parents probably counted you as a “dependent” for tax purposes. Now that you’re an adult, however, you may find that the time has come for you to count your parent as a dependent.   

However, knowing when and how to do this isn’t always as simple as you might think, which is why the help of a tax professional can often be beneficial.

The Importance of Income

First things first, you will want to keep in mind that your parents’ income counts a great deal in determining whether or not you can count one or both of them as dependents.

Your parents cannot have earned or received more than the allowed exemption amount for the appropriate tax year if you are going to claim them.

To determine what counts as income, to see this year’s allowed exemption amounts, and for help determining whether or not you and one or both of your parents qualify, talk with a financial professional.

If you do ultimately qualify, there are many great benefits to be had. And, if not, you can typically find other “workarounds” and exemptions to still end up saving money if you serve as a caregiver for one or both of your parents.

Why Support Matters

Something else you should know if you are seeking to claim one or more of your parents as a dependent is that you need to be able to prove that you have provided more than half of your parents’ income throughout the tax year.

You’ll need to factor in the cost of lodging your parent or parents, feeding them, paying utilities, and more.

Obviously, all of this can be a bit tricky, especially if your parents are living with you. This is why having a tax professional assisting you is recommended.