Can I claim my parents as dependents for health insurance and tax purposes?

Question

Both of my parents are permanently disabled and receive monthly social security checks. They are currently living, rent free, in a house I bought for them. In addition to letting them live in my house the car they use is my spare one and I pay for all the service and insurance. Can I claim them as dependent for my health insurance and on my taxes?

Answer 1

Health insurance no. But you can purchase individual medical insurance for them.

Taxes yes depending on their income.

http://www.ehow.com/how_2080732_claim-el...

Answer 2

i do not know about all carriers, but i work for blue shield and they DO allow you to carry your parents as dependents..i have seen a lot of cases with disabled parents, or parents who are foreign and are dependent on their children to survive in the US (either financially, socially, etc)..

ONLY on a group sponsored plan (employer)

and only certain employers will allow it. it isnt often, but yes, you can

Answer 3

There are two types of dependents. Qualifying Child and Qualifying Relative. Your parents are too old for the former, so let's focus on the latter.

To be a Qualifying Relative, they:

1) Relationship - They need to be related to you. As a parent, they pass this test. Certain relationships are too distant to qualify unless the person lives with you all year. Parents don't fall into that category. In fact, they NEED NOT LIVE WITH YOU AT ALL in order to pass this test.

2) Gross Income - If they have a gross income of $3,300 (exemption amount) or more, no dice. If their only income is social security, you're OK. If they have other income (pensions, investments, interest), make sure it is less than the exemption amount $3,300.

3) Joint Return - If they "have" to file a joint return, no dice.

4) Support - you must provide over 1/2 of their support. Sounds like you do.

Now, here is the fun stuff. If you are single and claim either or both of your parents as dependents and you pay for over 1/2 of the costs of maintaining your parents’ residence (whether it is the same residence as you or a totally different place) for the entire year, you can file as Head of Household instead of Single.

It sounds like you may have qualified to claim your parents and maybe even claim Head of Household in prior years as well. If so, it isn't too late to change (amend) your tax returns from prior years.

You will have to check with your insurance plan to see if dependent parents can be added. My guess is no, but I'm not an insurance expert.

Good luck!

By the way, all of this can be found at www.irs.gov. Look in Publication 17.

Answer 4

No, it won't work, sorry.