Tax matters
My mom lives in my home with my family and me in North Carolina. She receives SS income, which I know is not taxable. She also receives 6048.00/year retirement from her old job. She hasn't filed an income tax return since she retired several years ago. She does contribute a little to the household, but I spend a ton of money on her and her care. Would I be able to claim her as a dependent on my taxes? Thanks in advance for any help!
I'm not a tax expert, but it looks like she makes too much in her retirement for you to be able to claim her as a dependent. Maybe she should file a return, she may get money back? That I don't know.
http://www.irs.gov/publications/p501/ar02.html#en_US_publink1000220939
Qualifying Relative
There are four tests that must be met for a person to be your qualifying relative. The four tests are:
Not a qualifying child test,
Member of household or relationship test,
Gross income test, and
Support test.
Gross Income Test
To meet this test, a person's gross income for the year must be less than $3,650.
Gross income defined. Gross income is all income in the form of money, property, and services that is not exempt from tax. In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. Gross receipts from rental property are gross income. Do not deduct taxes, repairs, etc., to determine the gross income from rental property. Gross income includes a partner's share of the gross (not a share of the net) partnership income. Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. Scholarships received by degree candidates that are used for tuition, fees, supplies, books, and equipment required for particular courses may not be included in gross income. For more information about scholarships, see chapter 1 of Publication 970, Tax Benefits for Education. Tax-exempt income, such as certain social security benefits, is not included in gross income.
On tax matters, it's best to receive a reply from a professional, one who understands the tax laws. He/she will ask relevant questions to determine whether your mother can be listed as a dependent. I recommend that route as a caregiver to an elderly mother as well.
You do need to confer with an accountant or attorney. If she has not filed and was supposed to, you may be able to get duplicate copies of the annuity or 1099R. At least this is what I was directed to do by my parent's accountant. I was stressed out about them not filing. Obtaining duplicate copies of forms never even occured to me. I am awaiting one last piece from the Veteran's Adminisration, and then we will be able to complete this task. Caregiving is a learning process. We don't know it all. It's bit by bit. Best to you.
Felicia
