Can I File Exempt & Still Get a Tax Refund?

If you’ve taken on the responsibility of caring for your aging parent, you may be wondering: “Can I claim my elderly parent as a dependent on my taxes?”

In many cases, you can claim your elderly parent as your dependent if you meet specific IRS rules. But before you do, there are a few things to consider.

We’ve broken down the IRS requirements to help you navigate claiming an elderly parent as a dependent so you can take advantage of this potential tax benefit.

Key takeaways

• Can an elderly parent be a dependent? A parent may qualify as a dependent under the definition of a “qualifying relative.”
  
• In addition to your own parents, a “qualifying relative” may include your in-laws, stepparents, or grandparents.
  
• To claim your elderly parent on your taxes, they must meet requirements for the gross income test, support test, citizenship test, and not be claimed as a dependent by someone else or file a joint return with their spouse (unless it’s only to claim a refund).
  
• If you’re claiming your elderly parent as a dependent, you may be able to claim tax benefits like the Child and Dependent Care Credit, Credit for Other Dependents, and medical expense deductions if you itemize your deductions.

Is it beneficial to claim your elderly parents on your taxes?

Claiming dependents, including your senior parents or in-laws, can help you save on your tax bill or potentially boost your refund.

If you’ve been providing care or financial support to an elderly parent, it’s worthwhile to determine whether they might qualify as a dependent to see if it can benefit you when you file your tax return.

Can you claim your elderly parents on your taxes?

Whether you can claim an elderly parent as a dependent will depend on several factors, including:

• Gross income
• Financial support provided by you
• Citizenship

If they meet all requirements, you may be able to claim them if they aren’t:

1. Eligible to be the dependent of another taxpayer.
   • Note: This restriction is in place even if the taxpayer who can claim them as a dependent chooses not to do so.
2. Being claimed as a dependent on anyone else’s tax return.
3. Filing a joint return with their spouse (unless it’s only to claim a refund). 

Satisfying the gross income test

You must consider the income of your elderly parent when figuring out whether you can claim them. If your parent has a gross income of $5,200 or more in 2025 or $5,300 in 2026, you can’t claim them as a dependent on your taxes.

When evaluating your parent’s taxable income, don’t include their nontaxable social security payments and other tax-exempt pensions. Their taxable income can include:

• Dividends
• Capital gains from the sale of stock
• Interest earned in a bank account
• Gross earnings from self-employment, such as driving for Uber or Lyft
• Other passive investments, such as income from rental properties they own

Satisfying the support test

In addition to your parents having minimal gross income, you must also provide more than half (>50%) of their financial support during the tax year. This may include:

• Food and meals
• Utilities
• Housing costs
• Medical expenses

Satisfying the requirements of the support test requires a comprehensive evaluation of your parent’s expenses. 

However, the fact that your parents receive sufficient income during the year doesn’t necessarily mean the funds are used for their support.

For example, your parent’s Social Security benefits aren’t considered support unless they are actually spent for their support. The support test looks at who actually pays for the expenses, not the parent’s ability to pay. 

So, even if your elderly parent only uses their Social Security benefits to pay $300 in monthly rent and saves the rest, and you cover all other living expenses exceeding that amount each month, you would meet the IRS support test.

Satisfying the relationship and residency test 

To claim a parent on your tax return, they must satisfy the requirements as a “qualifying relative.”

Usually, a person must live with you for the entire year to be claimed. However, parents are an exception, in addition to stepparents, grandparents, and in-laws. 

Your elderly parent (or grandparent) also must meet one of the following requirements:

• Be a legal United States Citizen
• Be a United States National
• Be a United States Resident Alien
• Be a resident of Canada or Mexico

Does my senior parent have to live with me to qualify?

Unlike a non-relative, your parent, stepparent, in-law, or grandparent does not have to live with you.

Other benefits of claiming your elderly parents on your tax return

You can also take advantage of certain deductions or credits by claiming medical expenses and the Child and Dependent Care Credit on your tax return.

Medical expenses 

If you paid for your parent’s medical care, you may be able to claim their medical expenses that you paid if you can claim itemized deductions and they are your dependent. Keep in mind that your total medical expenses will have to exceed 7.5% of your adjusted gross income to claim these expenses.

Child and Dependent Care Credit 

Although most people think of the Child and Dependent Care Credit as a credit you can get for taking your kids to daycare, there is no age limit for a disabled parent who needs care so that you can go to work.

By paying for their care, you may be able to claim a credit of up to $1,050 for one dependent and up to $2,100 for two or more dependents. Starting in tax year 2026, you may be able to claim a credit of up to $1,500 for one dependent and up to $3,000 for two or more dependents under the OBBBA. 

Will claiming my elderly parents on my taxes affect their Medicaid or Social Security?

No, it will not impact those benefits for senior parents.

How to claim an elderly parent as a dependent

Claiming your elderly parent as a dependent is easy:

1. Ensure they’ve met all the above requirements.
2. Complete the “Dependents” section on IRS Form 1040 with your parent’s information. You’ll need their Social Security number for this.
3. Include itemized expenses (such as their medical expenses) on Schedule A if you itemize your deductions.

Don’t worry about knowing these tax rules. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Expert Full Service today, in English or Spanish, and get your taxes done and off your mind.

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