Subject:  Grandparent dependents
From:  Amber
Date:  Sat, 27 Mar 2004

Hi Mr. Gray,

I'm trying to figure our how and if my husband and I are able to claim my grandparents. They live with us 9 months out of the year. When they live with us, we provide all of their living requirements or support. They do not contribute to our household expenses. They manage an RV park for three months, for which they have W-2 income of $1,900 each, and have Social Security income. Can we claim them as dependents?

Answer

Date:  Fri, 2 Apr 2004

Hello Amber,

Yes. Tax exempt Social Security payments are not counted for the income limitation. Your grandparents do not have enough income for their Social Security to be taxable. You are providing more than one-half of their support, and they meet the relationship test. Remember, they can't claim their own exemptions if you claim them.

Good luck!
Mike Gray

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