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Claiming Elder Parent as Dependent

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    Claiming Elder Parent as Dependent

    I will be working with a new tax client and am trying to clarify a dependency test question. At this time I have limited information but any feedback is appreciated.

    Th TP is a single mother (already filing HOH) of a college-age student. The TP's elder widowed mother (age 90) lives with the TP. The elder mother receives Social Security and taxable pension income and some interest income. The TP noted that she provides lots of support and medical care to the elder mother (I don't have dollar amounts yet). The TP further noted that the previous tax preparer tried to have the TP claim the elder mother as a dependent but "she made too much money by about $70."

    I believe that the elder mom will be a "qualifying relative" on six of the 7 tests but am unsure about the "gross income test" and want to see if I'm missing something.

    TIA
    Steve

    #2
    Yeah, it's probably the Gross Income Test that will trip you up. $4,200 for 2019.

    Rick

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      #3
      But, if she meets all the tests except the gross income test AND your client pays medical bills for her mother, she can deduct those medical expenses along with those for herself and her child, subject to 7.5% -- IF itemizing is more beneficial for her than the standard deduction. So, don't forget to ask about donations.

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