Today TaxMama hears from Trudy in New Jersey who wants to know, “In regards to the tax rebate. If you claim your parent as a dependent do you get a credit for them? My husband and I have 3 children and also claim my mother on our taxes as a dependent. She lives with us and is on disability.”
Note: This answer is wrong! Please read the comments below for corrected information!
The Stimulus rebate talks about taxpayers and children. Not taxpayers and dependents.
It may be wise, this year, to file a tax return for your mother, just to report her Social Security Income (which is not taxable), so she can get the rebate. Follow the instructions here to report at least $3,000 of income – it won’t generate any tax:
You can use one of the members of the FreeFile alliance to prepare Mom’s tax return at no charge. http://snurl.com/freefile-tax In fact, IRS even has a sample 1040A, so you can see what it should look like.
(Incidentally if your mother is receiving SSI, for her disability, instead of Social Security income, she will not qualify for the rebate. )
On her tax return, check the box to show that she is your dependent. Then, you can still claim your mother as a dependent on your tax return.
And remember, you can find answers to all kinds of questions about the Stimulus rebates and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
- Ask TaxMama :: Where taxes are fun and answers are free
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- IRS.GOV :: Basic Information on the Stimulus Payments
- IRS.GOV :: Information for Recipients of Social Security Benefits
- MarketWatch.com :: FreeFile Alliance – Perhaps you can file your tax return for free?