My Mother in-law owns and operates a trailer park in California. She lives on the property and is single. Recently, she took in her 2 daughters who are adults and both are 100% disabled, the daughters both draw social security and Medicare. The daughters do not pay rent. FYI: My Mother in-law does not draw medicare.
Can my mother in-law claim her daughters a dependents and take a deduction? Her bookkeeper says no. I think this is wrong, but I thought I would ask..
Thanks

N0help4u

I think she needs to check with another book keeper. She is head of household and they are disabled. I just did my taxes with my son and the tax lady did my son's social security disability so that he could receive the ESI rebate and she did mine as head of household.
My son is 20 and 18 is legal age in my state.

MukatA

Yes, she may qualify as head of household:
a. She is single; b. she pays more than half the cost of keeping a house;
c. a qualifying person lives with her.

Read Read: Your U.S. Tax Return: Requirements for claiming a dependent