Can we claim grandmother as dependent? Have tax savings?

Question

My grandmother is out of money, she does get $1,200 a month from SS. Here assited living costs $2,000 a month which my wife and I will be paying for. Is it possible to claim her as a dependent? If so would that help my wife and I any financially? Having to spend $24,000 a year for my grandmother is going to be very tough for us so if any other advice is out there please feel free to post it.

Thanks!

Answer 1

If you provide more than 1/2 her support, you can claim her as a dependent and that could have a positive impact on your tax return, particularly if you and your wife are both working

If you own a home and itemize your taxes, and part of your grandmother's care is medical, that may also be tax deductible

If she has no assets, isn't she eligible for Medicaid??

Answer 2

The $2000  a month you'd be paying is more than her ss is.  What does that get used on?  Is that also used to pay the assisted living, or other items of her support?

If you provide over half of her support for the year, then you can most likely claim her as a dependent.

Good luck

Answer 3

My grandmother was in a nursing home for 3 years and used all her savings also to pay for it. My mother was her only child and died 10 years before my grandmother, and it was my grandmother's decision to be a nursing home, and not stay with one of us.  Since she had no assets, Medicare paid her nursing home expenses at the end.  You should not have to use your money to pay for this. Call your local senior help center (we were in NJ), and ask if there is assistance available for her.  My gradmother worked for 50 years in a cigar factory, lived well below her means, and used up $300,000- her entire life savings to pay for the nursing home, but she insisted on it.  We wish she could have used her money on herself earlier in life and enjoyed it!!  Good luck to you.

Answer 4

You didn't mention her having any income (pension, interest, dividends, IRA distributions, etc.) other than SS (which doesn't count as income).  So if that is true (or it is under $3500), you can definitely take her as a dependent.  Since she will be a dependent, you can deduct her medical expenses if you itemize.

Answer 5

You can review the IRS publication 501 and 502 (medical).

If the only income she has is from Social Security, the real question is showing that you provide more than half of her total support.  Do the support test worksheet in publication 501 and keep your receipts.  

If you can claim her the MEDICAL portion of the assisted living may be an itemized expense.