Can I claim my parents as dependents?

Claiming a parent as a dependent 

If you’re a caregiver for an aging or ill parent, you may be able to claim your parent as a dependent.

When you claim a parent as a dependent, it can help you maximize your tax savings and maybe even lead to a bigger refund. However, navigating the steps and rules around the process of claiming a parent can be confusing.

Let’s walk you through what it means to claim your parent as a dependent, along with some of the pros and cons.

What is a dependent parent?

Just like you can claim your children as dependents, you can claim a sibling or parent if you meet the requirements. The IRS’s definition of a dependent is “a qualifying child or relative who relies on you for financial support.” This could be a single parent or both parents, as well as stepparents, whether they live with you or not.

If you are covering more than half of your parents’ financial support, they are related to you by blood, adoption, or marriage, and each parent makes less than $4,700 (this is adjusted annually for inflation), you may be able to claim your parents as dependents.

Pros and cons of claiming parents as dependents 

While claiming a parent you’re taking care of as a dependent may seem like a no-brainer, very few things are straightforward when it comes to taxes. It’s important to take some time to fully understand the pros and cons before you take the next steps.

Tax benefits of claiming parents as dependents

When you claim a parent as a dependent, it gives you multiple tax benefits that can result in a bigger refund or lower tax bill. Here are some of the biggest pros of claiming a parent as a dependent:

• Head of household: If you are single and your parent is an eligible dependent, you may qualify as head of household. That means you’ll be able to take a bigger standard deduction, lowering your tax bill.
• Child and Dependent Care Credit: The Child and Dependent Care Credit is a tax credit created to offset the costs of childcare. However, it covers other dependents, too, including parents if you must pay for care during the time you, and your spouse if married, are working. This lowers your tax liability and may result in a bigger refund.
• Medical expenses deduction: Have you paid for your parent’s medical expenses, like insurance premiums, prescriptions, doctor’s visits, equipment, or long-term care? If the total cost exceeds 7.5% of your adjusted gross income, and you choose not to take the standard deduction, you can deduct these expenses from your taxes. Keep in mind that you may still be able to deduct your parent’s medical expenses from your taxes, even if their income is too high or you are also a dependent of another taxpayer. Work with a Tax Pro to help you decide.
• Credit for Other Dependents: Having dependent parents or other relatives can make you eligible for a $500 nonrefundable credit. The Credit for Other Dependents (ODC) is available when you have dependents who are not qualified children, such as children 17 and older, parents, and other relatives.

The downsides of claiming parents as dependents

While there are many notable tax benefits to claiming parents as dependents, there are also a few potential downsides and considerations you should be aware of. Here are the cons of claiming a parent as a dependent:

• More financial responsibility: To claim a parent as a dependent, you must cover more than half of their financial support. This could put a major strain on your budget and could easily outweigh the tax benefits of claiming a parent as a dependent.
• Sibling restrictions: Do you share the expenses of caring for a parent with a sibling? Only one of you can claim your parent as a dependent. Be sure to complete Form 2120, so you and your siblings can keep track of who claimed your parents each year, and who else agreed to it.
• Complex tax rules: The rules and eligibility for claiming a parent as a dependent can be confusing. If your documentation is inaccurate or you fail to verify eligibility, you could end up facing potential issues, an audit, or even additional taxes, penalties, and interest. That’s why it’s important to work with a Tax Pro who can help you get it right.

IRS rules for claiming parents as dependents 

The rules that surround claiming a parent as a dependent are complex. If you want to avoid potential penalties, it’s important that you fully understand them. Here are the requirements to consider:

• You (or your spouse, if you're married and filing jointly) cannot be claimed as a dependent by someone else.
• If your parent is married, you can only claim your parent as a dependent if they aren’t filing a joint tax return with their spouse. The exception is if they're filing only to get a refund from withholding.
• Your parent must be a U.S. citizen, a U.S. national, a U.S. resident alien, or a resident of Canada or Mexico.
• You’ve paid for more than half of your parent's expenses during the year.
• Your parent's total income, including any taxable Social Security benefits, for the year is less than $4,700 in 2023, or $5,050 in 2024.
• Your parent isn’t being claimed as a dependent by someone else, such as a sibling.
• If your parent is your foster parent, your parent can only be claimed as a dependent if they’ve lived in your home as a member of your family all year.
• For tax purposes, your parents include a stepparent and you can claim them as a dependent. This is true even if they don’t live with you, as long as you’ve met all other requirements.
• You can claim both parents as dependents, assuming you’ve met all the requirements.

How to claim a parent as a dependent 

Claiming your parent as a dependent on your tax return involves a few straightforward steps. Here's a step-by-step guide to help you navigate the process:

1. Make sure your parent is eligible: Double check that your parent meets all the IRS’s eligibility requirement for being claimed as a dependent. This includes the amount of financial support you’re providing, your parent’s income level, residency status, and many other factors. The IRS has a support worksheet for dependents in IRS Publications 4012.
2. Gather documentation: Collect all the documentation you need to support your claim. This may include proof of financial support, like receipts or bank statements.
3. Prepare your tax return: While there is no dependent exemption amount this year, there are credits available based on dependents. Be sure to claim all the credits or deductions you are eligible for.
4. Double-check your return: Before you file, review your tax return carefully to ensure all information is accurate and complete. Mistakes could lead to delays in processing your return, trigger an IRS audit, or even a penalty.
5. Keep your records: Once you file, retain copies of all relevant documentation and records related to claiming your parent as a dependent. This includes any receipts, forms, or correspondence with the IRS. This will come in handy if you need to provide further documentation or support in the future.

Can I claim my parents as dependents if they receive Social Security? 

Yes, you can still claim your parents as dependents on your tax return if they receive Social Security benefits, as long as they meet all the requirements to be claimed. However, if your parent receives Social Security benefits and some of those benefits are taxable, it may impact claiming your parent as dependents.

Social Security benefits are considered taxable income, but they don’t automatically disqualify you from claiming your parent as a dependent. As long as your parent meets the IRS’s income and other eligibility requirements, you can still claim them as a dependent even if they receive Social Security benefits.

Claiming a parent as a dependent on your tax return can offer significant financial advantages. By understanding the eligibility criteria, navigating the complexities of the rules, and weighing the pros and cons, you can make informed decisions that benefit both you and your parent.

The process of claiming a parent as a dependent can be complex and confusing. Don’t file alone. Work with a Tax Pro who can help you get it right.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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