can I claim my grandmother as a dependent on my taxes?

Answer 1

Regardless where your grandmother lives during the year, if you provide at least 50% of her living expenses and she has less than $3,300 gross income (all income that is not exempt from tax), you can claim her as a dependent on your 2006 tax return. You need to include any social security she receives and spends on herself as support she provided, but do not include it as gross income.

Example:
Her living expenses are $20,000 per year.
Her Social Security is $9,000 and she earns $500 in interest.
You must pay at least $10,000 towards her support to be able to claim her.

If her interest is $1,500, you can still claim her as long as you pay at least $10,000 towards her support. How is it possible for her to have $10,500 in income and you still support over half of her expenses? She could put over $500 of her income into savings or investment. All that matters is how much of her income and investments she uses towards her support. If you pay over 50% of her support, you pass the support test.

Now, if she receives over $3,300 in interest, no matter how much support you provide, you will not be able to claim her because her gross income is over the maximum amount.

Answer 2

Yes if you can prove you contribute more than 50% of her income you can claim her as a dependent.

Answer 3

You can if you are her primary source of income and she lives with you more than 6 months out of the year.