Perhaps! If you’ve taken care of a parent, s/he may qualify as a dependent. Claiming your parent as a dependent relies on several factors, however, such as your parent’s income and how much financial support you have provided for your mother or father. If you qualify for the adult-dependent exemption on your 2017 income tax return, you can deduct up to $4,050 per qualifying adult dependent. However, for 2018, under the Tax Cuts and Jobs Act (TCJA), the dependency exemption is eliminated.
Income and Support Restrictions On Claiming Dependents
For you to qualify for the adult-dependent exemption, in most cases your mom or dad must have less gross income for the tax year than the exemption amount. (Exceptions may apply if your parent is permanently and totally disabled.) If you are caring for an elderly parent, you should note that Social Security is excluded, but payments from dividends, interest, and retirement plans are included. Keep in mind that, even though Social Security payments can usually be excluded from the adult dependent’s income, they can still affect your ability to qualify. Why? If your elderly parent is using Social Security money to pay for medicine or other expenses, you may find that you aren’t meeting the 50% test. In addition, you must have contributed more than 50% of your parent’s financial support. If you shared caregiving duties with your brother or sister and if your combined support exceeded 50%, an exemption can be claimed, even though no one individually provided more than 50%. However, only one of you can claim the exemption.