Everyone knows that you can claim your children on your taxes, but does it also work the other way around? If you find yourself in a situation where you are caring for a parent, both physically and financially, then this guide is for you. The professionals at A. Roberts & Associates are about to show you how you can claim your parents on your taxes, including eligibility and benefits.
Determining Your Eligibility In Claiming Your Parents
Let’s get one thing straight. Just because your parents live with you, doesn’t mean you qualify for tax credits. To claim your parents on your taxes, you would have had to provide over half of their financial support during that tax year. Only then will the IRS see your parent as a dependent and allow you the privilege of qualifying for certain tax credits.
Read more > 6 Ways Tax Credits Can Impact Your Tax Returns
Financial support can include any of the following:
- Food
- Clothing
- Medicine
- Utilities
- Transportation
- Any living expenses
It’s worth it to note that this rule doesn’t only apply to parents and children. The process of claiming a dependent works for any family member as long as you meet the financial requirements. Ask your trusted financial advisor about receiving tax credits for claiming your siblings, grandparents, nieces, nephews, and even in-laws!
“Does My Parent Need To Have Any Qualifications?”
Even if you provide enough financial support, your parent (or parents) must meet their own set of requirements for you to be able to claim them on your taxes. For instance, they can’t make over $4,700 of gross income. This amount applies to all taxable income, not just earned income. Any amount that is received from social security, unemployment, and anything else of the sort must not exceed the threshold.
Another important factor is that you can’t claim parents on your taxes if you are considered a dependent yourself. You will need to be considered head of household to benefit from dependent-related tax credits.
Deciding Who Would Be Considered Head of Household
To claim your parents as dependents, you need to be considered head of household (HOH). There’s more than one way to earn this title. The first is that you are unmarried by the final day of the tax year. Otherwise, you must be providing more than half of the cost of maintaining a home. Also, your dependent (in this case, your parent) must have lived with you for more than half of the tax year.
Being head of household can come with a number of benefits on its own, not just from tax credits for claiming a dependent. Ask your reliable tax person about all of the tax breaks that you may qualify for this tax season!
Let A. Roberts & Associates Guide You On Your Taxes!
Don’t pass up opportunities to save money on your taxes. Contact A. Roberts & Associates today to schedule an appointment for reliable tax services near you! We’ll help you maximize your taxes and offer financial strategies through our retirement planning services.