She has ss income only. She also just cashed out her retirement fund. That totaled about $9,000 or so. Is the retirement money taxable?
2007-02-12 08:59:24 · 6 answers · asked by cadillac94pimpin22 1 in Business & Finance ➔ Taxes ➔ United States
The retirement money is taxable.
But i believe you can still claim her as an independent if she is living with you and you can show proff that you are responsible for her.
The tax breaks for her would be the same as if you were claiming for a child.
My mother claims my grandmother as a dependent.
I would recommend talking to a tax specialist though.
Good luck.
2007-02-12 09:02:11 · answer #1 · answered by Anonymous · 0⤊ 3⤋
You've received more wrong answers so far than right ones.
Her retirement fund probably is taxable income, and that would keep you from claiming her this year since it's over the $3300 limit for gross income.
If next year she just has social security, and if you provide more than half of her support, then you would be able to claim her.
2007-02-12 16:01:00 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
you would only be able to claim your mother as a dependent if her gross income was less than $3,300 and you provided more than 50% of her support for the year.
the retirement distribution is most likely taxable. she would have to file her own tax return and you would not get to claim her as a dependent since she had taxable income in excess of $3,300.
however, in 2007, if her only income is SS benefits, then you would be able to claim her as a dependent if you provided more than 50% of her support. SS income is non-taxable if that is the only source of income.
2007-02-12 14:15:00 · answer #3 · answered by tma 6 · 1⤊ 0⤋
If her only income is soc sec., it won't be taxable. Soc. Sec. only becomes taxable when you have other income throwing you over the threshold of $25,000 income.
OOPS! I thought it was soc. sec. I misread. If it is retirement, it is most likely taxable and she most likely is not your dependent. SORRY!
Go to this site for info:
http://www.irs.gov/faqs/faq2-3.html
2007-02-12 11:02:00 · answer #4 · answered by LC 2 · 1⤊ 0⤋
I think you can claim anyone as a dependent who depends on you for support. I'm not sure if retirement is taxable but I dont think it is?
2007-02-12 09:03:24 · answer #5 · answered by richard p 2 · 0⤊ 2⤋
only if you are head of household.. not married,, and she is not claiming you... talk to a tax person though
2007-02-12 09:02:12 · answer #6 · answered by Anonymous · 0⤊ 2⤋