can I claim my parents as dependants although they live overseas and I send them money regularly for support?

Question

My dad is retried, and my mom doesn't work. The only income for them is my dad's social security. I send my parents money on a regular basis to help support them financially. All the funds I send are through bank wire transferes, so everything can be easily shown on official papers from my bank.

Answer 1

You can claim them as dependents for tax purposes if they meet the tests required to be considered Qualifying Relatives. See the IRS Publication 501: Exemptions, Standard Deductions & Filing Information (I've included a link). The tests are

Not a qualifying child test,

Member of household or relationship test,

Gross income test, and

Support test

I think you're good on the first two, but only you can say whether or not they pass the second two.

Also know that if you do claim them as your dependents, they won't be able to claim themselves.

Good luck :)

Answer 2

I claimed my mother when she lived with me. Her SS would never have covered all her living espenses. I would say that if you are sending them enough that it is more than 50% of what they need to live that they would be a dependent. Check it out with someone that knows the tax laws.

Answer 3

Nope on the two counts. Charitable contributions are purely deductible if the corporation is registered with the IRS as a factor 501c(3) corporation. additionally, money contributions must be backed up by using receipts issued by using the corporation.

Answer 4

Ask the IRS at www.irs.gov.

A layperson's well meaning advice could be wrong and then expensive.

If you ask an accountant, they could make a mistake and still cost you money.

You can also call the IRS.

Answer 5

Only if you are providing more then 50% of their support.