There are so many things to consider when it comes to your parents and their well-being. You want to ensure that everything you do is in their best interest and will not affect them in the long run. As such, many persons have asked the question of whether they can Claim Someone As A Dependent If They Are On Social Security.
Well, claiming social security by itself is not a complicated task. It does not have the potential to affect your ineligibility to be claimed by someone else on their tax return.
Can You Claim Someone As A Dependent If They Are On Social Security?
However, to claim someone as a dependent, they must meet the requirements stipulated by the IRS as well as other conditions. The IRS does mandate that for one to be added as a dependent, they must not earn a certain amount of income (which changes each year) to include assistance from direct sources like an outside job or family and friends.
If the person meets the guide, they will be able to be claimed as a dependent on another person’s tax return. But how does it work? The IRS takes into consideration multiple sources of earning as an income, and as such, one has to be careful how they approach in applying for someone to become dependent.
If the person is making more than is set, parts of their social security may become taxable. So, as a support, you may want to consider limiting the amounts of funding you give, so it doesn’t affect their overall benefits.
However, one who claims Social Security disability pay may not be exempt from becoming dependent; however, there are specific rules which must be followed.
Get our FREE Printable Worksheet
Can I Claim My Aging Parent As A Dependent?
The answer is both yes and no. You can claim your parents as dependents but only according to the guidelines stipulated by the IRS. If you are going to claim your parents, you have to ensure they are not dependent on another person’s tax returns.
First of all, there must be a dependency relationship between you and your parent in the sense that you cater to a part of their well-being by providing financial support, housing, or other care.
They can naturally be deemed dependent if they rely on someone to help them get by, which means you could benefit from extra returns when you claim. So, once both you and your parent qualify according to the standards, you can start the process to apply for them as a dependent.
But how can your parents qualify for dependency? They should:
- Not earn above the threshold set by the IRS in terms of gross annual income. This amount is set by the IRS and may change each year or as they wish. You may find the yearly threshold on their website.
- Even though Social Security may not be considered an income, there is still restriction when it comes to earning a certain amount from other sources, which can also be in the form of financial funding from family and friends.
- Earn more than half their yearly income and support from you before they can be added as a dependent. Also, the support you provide must be at least one dollar more than your parents’ base income.
The support can be covered by many different factors, such as housing (how much the market share of the house is).
Also, the cost may be incurred through food provision, utilities, medical, and other living expenses. An additional benefit for you comes in the form of claiming medical expenses if you had covered their medical care cost.
Your parents may also automatically qualify if they are physically or mentally challenged and is unable to provide for themselves. For further clarification on how to Claim Someone As A Dependent If They Are On Social Security, you can check with the IRS website as the requirements and guidelines change.
Other posts you may find useful if you liked Can You Claim Someone As A Dependent If They Are On Social Security:
- Alarm Clocks for Seniors: The Top Picks for Easy-to-Read Displays and Loud Alarms
- Best Cane for Seniors: Top Picks for Stability and Comfort
- Best Recliners for Seniors: Comfortable and Supportive Options for Relaxation
- Best Walker for Seniors: Top 5 Picks for Stability and Comfort
- Alzheimer’s Books for Caregivers: Top Recommendations in 2023