Tax Q&A: Can I claim my parents as dependents?
As the April 15 tax deadline fast approaches, you probably have questions. Fortunately, we have answers. Every day until April 15, members of the American Institute of Certified Public Accountants have agreed to answer selected tax questions from USA TODAY readers. Submit your questions to jwaggoner@usatoday.com.
Q: I have parents living with me at home who have retired. They both receive Social Security and do not work. Their total Social Security is not more than $600 a month. They have no means to support themselves with that much income monthly; hence, I take care of them. I have been claiming them as dependents on my taxes. I wanted to make sure this was legal in the eyes of IRS. If they were to get sick and get hospitalized, would I be responsible for their medical bills if I have been claiming them as dependents and Medicare does not cover something for whatever reason?
A: Regarding the first question, based on the facts presented, the reader should be able to claim the parents as dependents on his or her return. I am presuming that:
• The taxpayer provided more than one-half of the support of the parents, and
• The parents did not file a joint return because their income level was below the threshold for filing a return.
If the reader is an unmarried taxpayer, he or she may be able to file with head of household status. Taxpayers who qualify for head of household status usually have a lower tax rate than if they filed using the single or married filing separately status and also receive a higher standard deduction. Information about claiming qualifying relatives as dependents and filing with head of household status is included in IRS Publication 501.
In answer to the second question, claiming the parents as dependents on the taxpayer's return is a tax matter, and the liability for future medical bills is a legal issue. The reader may want to check with his/her attorney or local Legal Aid Society for information about responsibility for medical bills.
Rodney M. Harano, Managing Partner, CW Associates, Honolulu
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