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    staedav's Avatar
    staedav Posts: 1, Reputation: 1
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    #1

    Feb 3, 2007, 06:05 AM
    Is parental financial assistance tax deductible
    During the 2006 tax year I paid my retired parents prescription drug bills. They were both in the "donut hole" and were unable to afford them. Can I deduct the $4400 on my tax return as a one-time gift or is there some other tax deduction classification I can use? We live in the state of Oklahoma
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Feb 3, 2007, 10:15 AM
    You cannot deduct the $4,400.

    However, if your parents' income is only from Social Security AND you provide over half of their support, you MAY be able to claim them as dependents. They do NOT have to live with you to make this claim.

    If you need my professional help, contact me at [email protected].
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