Claiming Mother-In-Law On Taxes: What You Need To Know

If you're caring for an elderly parent, you may be able to claim them as a dependent on your income tax return. This is also true for your mother-in-law, assuming you provide more than 50% of their support. However, there are a few tests that must be passed for someone to be considered a dependent. These include the qualifying relative requirements, which state that the person must not be your qualifying child, and must have less than a certain amount of taxable income. Additionally, their marital status may impact your ability to claim them. It's important to carefully consider all the requirements and consult official sources or legal experts before making a decision.

Can I claim my mother-in-law on my taxes?

Gross income

When it comes to claiming dependents on your taxes, the gross income of the dependent and the person claiming them is an important factor. In the United States, to claim someone as a dependent, they must meet certain requirements, including the gross income test. For the year 2024, a dependent's gross income must be less than $5,050, and this threshold increases to $5,200 for 2025. This means that if your mother-in-law's income exceeds this amount, you may not be able to claim her as a dependent.

Additionally, to claim someone as a dependent, you typically must provide more than half of their total support during the calendar year. This includes basic living expenses such as food, housing, utilities, medical care, and education. If you are claiming a dependent based on the qualifying relative rules, their gross income must also meet the income test requirements mentioned earlier.

It is important to note that the rules and regulations regarding gross income and dependent claims can vary based on your specific circumstances and the tax laws in your country or region. Therefore, it is always recommended to consult with a tax professional or refer to the official guidelines provided by your local tax authorities for the most accurate and up-to-date information.

Support test

The support test is one of the four or five tests that must be passed to claim someone as a dependent for legal and tax purposes. The other tests are the relationship, age, residency, and joint return tests. The support test is a test used by the IRS to determine if an individual can be claimed as someone else's dependent for tax purposes.

The support test mandates that a taxpayer must pay for more than half of a prospective dependent's annual living expenses. The definition of living expenses and what calculations are involved in the test are outlined by the IRS. The IRS provides a detailed worksheet to calculate how much a dependent paid toward their own qualifying support needs, and whether the taxpayer can claim them on their tax return.

The support test calculations are very specific and must obey the following guidelines: The amount of support for lodging costs takes into account the fair rental value of the lodging, including a reasonable allowance for the use of appliances, utilities, and furniture. The cost of bulk purchases, such as groceries, must be divided by the number of total household members to achieve an accurate figure spent on the dependent. The residential property provided to house a dependent must be measured by its fair market value. Certain appliances and electronic items may be considered expenses, depending on their use.

The support test is closely related to the relationship and residence tests, but the prospective dependent does not have to live with the taxpayer to pass this test. The support test is perhaps the most direct measure of whether a taxpayer should be able to claim someone as a dependent.

Joint return test

The joint return test is one of the tests that potential dependents must pass to be claimed as such by another taxpayer. This test is created by the IRS and is used to determine if you can claim another person as a dependent on your taxes.

According to the joint return test, a dependent cannot file a joint tax return with a spouse. This means that if a dependent is filing a joint tax return with someone else, usually a spouse, they cannot be claimed as a dependent by another taxpayer. In other words, if a person can file with the status of married filing jointly, they cannot be claimed as a dependent by another taxpayer.

There are, however, two exceptions to this rule. The first exception is that the dependent and their spouse can file a joint return only to claim a refund of income tax withheld or estimated tax paid. The second exception is that if the dependent and their spouse filed separate returns, neither of them would owe any tax.

The joint return test is one of several tests that must be passed for someone to qualify as a dependent. Other tests include the relationship test, the residency test, the age test, and the support test.

Qualifying relative

A qualifying relative is a dependent you can claim when filing your taxes. A dependent is a qualifying child or relative who relies on you for financial support. To be considered a qualifying relative, certain conditions must be met.

Firstly, the qualifying relative must be a US citizen, resident alien or national, or a resident of Canada or Mexico. A dependent cannot be claimed on more than one tax return, and they cannot claim a dependent on their own tax return. Additionally, you cannot claim your spouse as a dependent if you file jointly.

Secondly, the qualifying relative must meet the Member of Household or Relationship Test. They must either live with you all year as a member of your household or be a specific type of relative. Certain relatives don't have to live with you to meet this test, including your child, stepchild, foster child, or a descendant of any of them (e.g., your grandchild). Other relatives who meet this test include your father, mother, grandparent, or other direct ancestor, but not a foster parent.

Thirdly, the qualifying relative must pass the Gross Income Test. Their gross income, including all income in the form of money, property, and services that aren't exempt from tax, must be less than a certain amount. For 2022, this amount was $4,400.

Finally, the qualifying relative must pass the Support Test. You must provide more than half of their total support during the calendar year. This includes support provided by the dependent from their own funds.

If your mother-in-law meets all four tests, you may claim her as a dependent on your tax return. However, it is important to note that the Tax Cuts and Jobs Act suspended the deduction for qualifying relative exemptions for tax years 2018 through 2025. While you cannot claim a deduction for your mother-in-law, you may be able to claim other tax benefits, such as the Child Tax Credit, earned income tax credit, and child and dependent care credit.

Tax credits and deductions

If you care for your mother-in-law, she may qualify as your dependent for tax purposes. This will depend on whether she meets the "qualifying relative" requirements. The IRS uses different rules to determine whether children and qualifying relatives are dependents. To be a dependent, your mother-in-law must meet all four of these tests:

• The person cannot be your qualifying child.
• The person can be your father, mother, grandparent, stepparent, niece, nephew, aunt, uncle, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
• The person must live with you or be closely related. Certain relatives don't have to live with you to meet this test, including your child, stepchild, foster child, or a descendant of any of them (e.g., your grandchild).
• The person must have less than $5,050 in taxable income (for 2024). Social Security benefits and other tax-free income don't count for this purpose, but interest, dividends, and taxable pensions do.

If your mother-in-law meets all four tests, you may claim her as a dependent on your return. This may make you eligible for tax credits and deductions, such as the Credit for Other Dependents. This credit is worth anywhere from 20-35% of qualified expenses, depending on your income level. The maximum amount of qualified expenses you can claim for 2024 is $3,000 for one qualifying dependent parent or $6,000 for two or more qualifying dependents.

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