I want to include my mother as a dependent (US resident) in my 1040. She is a citizen of India, and she gets pension money in India. She has real estate in India. She has to file taxes in India. Can I include her in my 1040 as a dependent? Should I include her pension income in India ? Should I pay taxes if she sells her real estate in India and gains monetarily in the process ?

You can claim her if:

1) You provide MORE than half of her total support.

2) Her total taxable income in the U.S. is LESS than $3,650.

The pension income, by treaty, is tax-exempt because it is taxed in India. However, if she collects rental income, THAT income is subject to U.S. income taxes.

She does not even have to live with you.

If you need professional help with this, email me at [email protected].