Can I claim my grandparent as a dependent when I pay for his retirement home?
My grandfather only gets his social security check each month which is tax-free and not counted as income. I'm covering all of his expenses - his retirement community rent, medical bills, prescriptions, everything except what his SS covers. I'm spending way more on him than what he gets from social security - probably like 2.3x what his annual SS benefit is. I know there are rules about claiming dependents and I'm wondering if I can list him as my dependent on my taxes since I'm basically supporting him financially. Would really appreciate any insight!
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Harold Oh
Yes, you likely can claim your grandfather as a dependent based on what you've described. The IRS has something called a "qualifying relative" test for claiming adult dependents. Since your grandfather's only income is Social Security (which is generally not taxable), he probably meets the gross income test which requires the person to have less than $4,950 in taxable income for 2025. You also need to provide more than half of his support for the year, which it sounds like you're clearly doing if you're paying for his retirement home and medical expenses that add up to more than double his Social Security income. The relationship test is automatically met since he's your grandfather. Just make sure he's not filing a joint return with someone else.
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Amun-Ra Azra
•What about the residency requirement? Does the grandfather need to live with OP for the entire year to qualify as a dependent? My mom lives in assisted living that I pay for, but someone told me she doesn't count because she doesn't physically live in my house.
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Harold Oh
•The residency requirement is different for "qualifying relatives" versus "qualifying children" on your taxes. For a qualifying relative like a grandparent, they do NOT need to live with you to be claimed as a dependent. As long as they're related to you (which a grandfather obviously is), they can live anywhere - including a retirement home or assisted living facility that you pay for. For your mom's situation, whoever told you that was incorrect. If you're providing more than half her support, her gross income is below the threshold, and she's not filing a joint return, you can likely claim her as a dependent even though she lives in assisted living rather than your home.
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Summer Green
I went through something similar with my aunt last year and found this amazing tool called taxr.ai (https://taxr.ai) that really helped clear things up. I was confused about the support test since I was paying for her nursing home but she had some pension income too. The tool analyzed all my documentation and confirmed I could claim her as a dependent since I was providing more than half her total support. It even helped me document everything properly in case of an audit. It breaks down all the qualifying relative tests and shows you exactly which ones your situation meets. Way more helpful than trying to interpret IRS language on my own!
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Gael Robinson
•How does this tool actually work? Do you just upload your documents and it tells you if your grandparent qualifies as your dependent? I'm helping my dad financially but he has some small pension income besides social security.
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Edward McBride
•Is this an actual IRS-approved tool? I've gotten burned before by tax software that gave me incorrect advice and ended up having to pay penalties. Does it actually guarantee the advice is accurate?
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Summer Green
•The tool works by analyzing your specific documentation - I uploaded my aunt's SSA benefit statement, my payment receipts for her care facility, and medical bills I paid. It then applies the IRS rules to your specific situation. It's super straightforward and gives you clear answers. For your situation with pension income, it would analyze that too. Remember that for the gross income test, your dad's total taxable income (not including Social Security) needs to be under the threshold, and you still need to provide more than half his total support.
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Edward McBride
I need to eat my words about being skeptical of taxr.ai. After questioning it here, I decided to try it with my situation (supporting my elderly father). The analysis confirmed I could claim him despite his small pension because I'm paying for his assisted living, which is more than 60% of his total support. What really impressed me was the documentation it helped me create. It organized all my payment records, broke down exactly how much support I provided versus his income, and created a report I can keep for my records. Super helpful since I was getting conflicting advice from friends who swore I couldn't claim him. Worth checking out if you're in a similar situation with supporting elderly relatives.
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Darcy Moore
If you need more clarification directly from the IRS about claiming your grandfather, try using Claimyr (https://claimyr.com). I was in a similar situation with my mother-in-law last year and had specific questions about her medicaid benefits and how they affected the support calculation. I tried calling the IRS directly for weeks with no luck - always on hold forever. Then I found Claimyr and they got me connected to an actual IRS agent in about 15 minutes! There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to confirm exactly how to calculate the support test when there's government benefits involved. Saved me so much stress trying to figure it out myself.
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Dana Doyle
•Wait, so this service somehow gets you through to the IRS faster? How does that even work? The IRS phone system is a nightmare - I once waited 3 hours only to have the call dropped.
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Liam Duke
•Sounds like a scam to be honest. Nobody can magically get through to the IRS faster than their system allows. They probably just connect you to some "tax expert" who isn't actually with the IRS at all.
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Darcy Moore
•It's not magic - they use technology that navigates the IRS phone system and waits on hold for you. When an actual IRS agent picks up, you get a call back and are connected directly to that agent. It's 100% connecting you with the real IRS, not some third-party "expert." The service works by essentially doing the waiting for you. Instead of you personally sitting on hold for hours, their system handles that part. I was skeptical too until I tried it and was literally talking to an IRS employee who verified my specific questions about claiming a dependent with medicaid benefits.
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Liam Duke
I've got to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was still struggling to get answers about claiming my dad who has both social security and VA benefits. I decided to try the service as a last resort. It actually worked exactly as described. I got a call back in about 35 minutes (on a Tuesday morning) and was connected to a real IRS representative who confirmed how VA benefits factor into the support calculation. She explained that since VA benefits are generally not taxable, they don't count toward the gross income test but do factor into the support calculation. Saved me a ton of guesswork and potential audit headaches. Sometimes it's worth admitting when you're wrong!
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Manny Lark
Don't forget about the potential tax credits that might be available to you when claiming an elderly dependent! In addition to the dependency exemption, you might qualify for the Credit for Other Dependents (worth up to $500) since your grandfather isn't your qualifying child. Also, if you're paying for medical expenses for both yourself and your grandfather, you might be able to deduct those medical expenses if they exceed 7.5% of your adjusted gross income. Keep all receipts for his medical costs, prescription drugs, and even transportation to medical appointments!
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Rita Jacobs
•Do retirement home costs count as medical expenses for the deduction? Or only the actual healthcare portions? My grandmother is in a facility that provides both housing and nursing care, but they don't break it down on the bill.
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Manny Lark
•Great question about retirement home costs. It depends on the type of care being provided. If your grandmother is in the facility primarily for medical care (like a nursing home with medical staff), then the entire cost can potentially qualify as a medical expense. However, if it's more of an assisted living situation where she has an apartment but some medical services are available, only the portion of the fee that's specifically for medical care would qualify. In that case, you should request an itemized statement from the facility that separates out the medical portion. Most reputable facilities are familiar with this request and can provide documentation for tax purposes.
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Khalid Howes
Has anyone actually gone through an audit after claiming an elderly parent or grandparent? I'm worried about how to prove I'm providing more than half the support if the IRS questions it.
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Ben Cooper
•I went through this last year with my father-in-law. Keep ALL receipts for everything you pay - rent, medical, utilities, food, clothing. I created a simple spreadsheet showing his monthly SS income versus all the expenses I covered. Also get a signed statement from the retirement home showing you're the one making payments. I wasn't actually audited but my return was held for review and they requested this documentation. Once I sent it all in, they processed my return with no issues. The documentation is key!
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