Claiming a parent as a dependent yes or no year for tax year 2024?

There are a handful of reasons you may want to claim a parent as a dependent. But before you do that, you and your parent(s) must meet certain criteria to be eligible to claim them as a dependent.

Claiming an elderly parent as a dependent is common for children who act as caregivers. Even if your parents don’t need full-time care, claiming them as a dependent allows you to support your parents while minimizing your financial burden. 

If you pay for care for your elderly parents, you may also be eligible for caretaking tax breaks, so make sure to look into those opportunities as well. Tax credits and exemptions can help you reduce your tax liability.

. **Not a Qualifying Child:** Your parent cannot be your qualifying child or the qualifying child of any other taxpayer.

2. **Relationship:** The person you wish to claim must be related to you. A parent fits this requirement.

3. **Gross Income:** Your parent’s gross income for the year must be below the threshold set by the IRS. For instance, in 2021 it was $4,300. This number may change, so you should check the specific year's requirement.

4. **Support:** You must provide more than half of your parent's total support for the year. This includes expenses such as food, housing, medical, transportation, and other necessary living expenses.

5. **Residency or Member of Household:** Your parent does not have to live with you. However, they need to meet the residency requirements in terms of citizenship or residency (U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico).

6. **Not a Dependent of Another:** Your parent must not be a dependent of another taxpayer.

As with anything tax-related, you’ll have to meet a few requirements. Once the requirements are satisfied, you’ll be able to receive an additional tax break for your efforts, designed to help offset the costs associated with caring for a parent.

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Zoe Financial Provision LLC

11/21/2024