can i claim grandmother as dependant on taxes even if she collects social security?

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

You have to provide more than one-half of her support during the tax year. If she does not spend any of the social security that she receives the amount that is not spent is not counted for purposes of the support test.

She meets the relationship test because she is your grandmother.

Her gross income must be less than the personal exemption amount for the tax year (I do not know what it is for 2006; look at the back of a Form 1040, at one of the line items near the top to see what it is for 2006). Gross income is measured by income that it is taxable.

If your grandmother is married and files a joint return with her husband no dependency exemption is generally allowed. However, this rule does not apply if (1) the reason for filing is to claim a refund for taxes withheld, (2) no tax liability would exist for either spouse on separate returns or (3) neither spouse is required to file a return.

To be a dependent, the dependent must either be a U.S citizen, a U.S. resident or a resident of Canada or Mexico for some part of the calendar year in which the taxpayer's tax year begins.

Your grandmother needs to meet all five of these tests.

I realize that this is complicated. You would be well served to talk to someone at H&R Block, an EA (enrolled agent; generally less expensive than a CPA) or a CPA.

I hope that this helps. Thanks for letting me be of service.

Answer 3

A grandparent does not have to live with you to be eligible to be claimed

Answer 4

If she lives with you, and you can prove that you pay more than 50% of her support, then you can. but be prepared to prove all expenses

Answer 5

Only if she is legally under your care This has to be appointed in a court of law.