Since my mother died, my father (aged 77) and his two dogs moved in with us. We agreed he would contribute $300 each month towards his keep plus dog food, treats, etc. He is now asking if I am declaring this on my tax return. Is it income? It is costing us much more than $300 a month for him to live with us.
2007-03-02 01:50:50 · 2 answers · asked by Jill1951 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
It's just shared living expenses and as such isn't taxable to you or deductible by him.
If his annual income is less than $3,300 (excluding tax exempt Social Security) and if you provide more than half of his support you may be able to claim him is a dependent. That $300 that he pays you will figure into the support calculations but if you provide at least $301 per month towards his support (figure half of your rent, utilities, food, etc. in calculating this) you will be OK claiming him as a dependent.
2007-03-02 02:52:50 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Technically, yes is is income. The greater question is why is your Dad asking this? Is he claiming this on his income taxes? If so, then you better claim it.
2007-03-02 09:56:19 · answer #2 · answered by ? 7 · 0⤊ 2⤋