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Alfador · Dec 1, 2008, 12:16 AM

This is actually a question I was asked as part of a tax project in a course, but I can't seem to find a conrete answer for it.

If you have parents living together with your sibling, and all 3 are receiving social security of $600 a month (7200 each annually), Can I claim them, if I provide 2000 a month of support total?

As I understand it (and based on a copy of Tax Cut from 2007) the sister can be claimed.

As for the parents (age 74 and 75), I know I provide more than half their support, and that they are Married filing a joint return. That's where I run into confusion. I can't determine if they have to file in the first place. According to the software, if they are obligated to file I can't claim them because they file jointly, but if they would only file to receive a refund and aren't obligated to, I can claim them.

I guess the ultimate question is are the parents not obligated to file so I can claim them, or does their combined Social Security of $14,400 require them to file, in which case I would only be able to claim the sibling.

Thank you in advance for responses.

Alfador · Dec 1, 2008, 12:17 AM

To add to my additional question, I should mention all 3 possible dependents live together in a separate house out of state, but in the country.

MukatA · Dec 1, 2008, 03:58 AM

Read about the requirements to claim a dependent--Qualifying Relative: Your U.S. Tax Return: Requirements for claiming a dependent

AtlantaTaxExpert · Dec 1, 2008, 09:43 AM

Alfador:

If Social Security is their ONLY source of income and you provide MORE than half of their total support (and you can prove this, if asked), then you can claim your sister and both of your parents as dependents, even if the parents file a tax return to receive a refund.

Under normal circumstances, your parents would not have to file a tax return at all, as Social Security by itself is not taxable. Social Security CAN become taxable if there is other income involved.

The fact that they live in another state in a separate house is irrelevent; you can still claim them.

Alfador · Dec 1, 2008, 01:13 PM

Thank you very much for your answers. Based on your responses I will be able to claim them all then since the only reason they'll be filing is for refunds.