Archive for Adult- Dependent Exemption

Claiming Parents As Dependents On Income Taxes

As more and more Baby Boomers are caring for elderly parents, the question often arises: “Can I claim my parent(s) as dependents on my taxes?” The answer to that is, “It depends.”

The IRS does allow parents to be claimed as dependents if certain requirements are met. The IRS always has requirements.

To meet the support requirements necessary to claim your parent as a dependent on your tax return, you must cover 51% or more of their support costs. These costs include food, housing or lodging expenses, clothing, and medical services and/or equipment costs. Read More

Written by | Posted in Adult- Dependent Exemption

Retirement Plan Contributions In 2018: An Elderly Parent Might Qualify As Your Dependent

The clock is ticking down to the tax filing deadline. The good news is that you still may be able to save on your impending 2017 tax bill by making contributions to certain retirement plans.

For example, if you qualify, you can make a deductible contribution to a traditional IRA right up until the April 17, 2018, filing date and still benefit from the resulting tax savings on your 2017 return. You also have until April 17 to make a contribution to a Roth IRA.

And if you happen to be a small business owner, you can set up and contribute to a Simplified Employee Pension (SEP) plan up until the due date for your company’s tax return, including extensions. Read More

Written by | Posted in Adult- Dependent Exemption • IRA • Retirement • Social Security