Can I Claim An Elderly Parent As A Dependent In South Carolina?

Here is a summary of the important points covered in this guide: 

• The requirements for claiming an elderly parent as a dependent in South Carolina. 
• Whether claiming an elderly parent affects your taxes or Medicaid. 
• Common mistakes people make when claiming elderly parents as dependents. 

What Are The Requirements For Claiming An Elderly Parent As A Dependent In South Carolina?

Your parents are among the most important people in your life. If they are elderly, it is possible to add them as dependents to ensure they are taken care of even when you’re not there. 

There are basically three rules: 

1. You must provide at least one-half of the financial support for that person.
2. The dependent’s income must be below the federal gross income standard, which was around $4,700 in 2023. 
3. The dependent must be related to the taxpayer, or if not, then he must have lived with the taxpayer for one full year.

What Documentation Should I Keep To Prove My Parent’s Dependency Status?

Before adding your parent as a dependent, you will need to prove their dependency status through various documents. 

You should keep proof of payments for their benefit, doctor bills, and other such documents, and also provide some proof that they lived with you for at least one full year. This evidence could include your parent’s medical bills, but with the address of your home, providing proof that your parent lived at that address.

How Does Claiming An Elderly Parent Affect My Personal Taxes?

Before adding any dependents, it’s important to know how this will affect your taxes. This is crucial because it helps you determine whether this is the best choice for you. 

If you claim an elderly parent as a dependent, this will affect your personal taxes positively. Any dependent, whether a child or a parent, can be claimed as an exemption on your personal tax return, which lowers taxes.

Does Claiming My Parent As A Dependent Affect Their Eligibility For Medicaid?

No, claiming your parent as a dependent has no impact on your eligibility for Medicaid. Whether they are already on Medicaid or whether they apply for Medicaid after they become your dependent, the result is the same. Medicaid eligibility is not affected by them being your dependent.

What Are The Common Mistakes People Make When Claiming An Elderly Parent As A Dependent?

The most common is trying to claim an elderly parent when that parent has a good income, such as investment income, or when the parent only lives with you for part of the year, and you cannot prove that they lived with you for the entire year.

To avoid these mistakes, keep good records of everything you spend on your parent, along with bills showing their address as yours. Ensure you have proof of your financial support, your parent’s income, and their having lived with you for at least one year. 

Still Have Questions? Ready To Get Started?

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