You might be able to claim your mother as a dependent relative on your income taxes, which would lower your income taxes. The first of the tests is the not a qualifying child test, which your mother would pass because she is not the qualifying child of any other taxpayer.
Household or Relationship Test
Your mother satisfies the relationship test because mother is one of the relationships listed in IRS Publication 501. Since your mother meets that part of the test, she does not have to live with you the entire year.
Gross Income Test
In order to claim your mother, she must have less gross income than the exemption value for the year. Gross income includes income from rental properties. For the 2010 tax year, the exemption value equals $3,650 so if your mother has $2,000 in income, you would be able to claim her. However, if she had $4,000 in gross income, you would not be able to claim her.
Support Test
To claim your mother as a dependent on your income taxes, you must provide at least half her support. Your mother's assets do not count toward support unless she actually uses them. For example, if your mother has $10,000 in a bank account, but you pay $8,000 of her expenses and she pays $3,000, you would pass the support test. However, if your mother uses the $10,000 for her expenses and you pay $8,000 in support, you would not qualify because you pay less than half of her support.
Filing Effects
To claim your mother on your income taxes, you have to use Form 1040A or Form 1040 to file your taxes. The amount that you save on your taxes varies depending on your tax rate. The higher your tax rate, the greater your savings. For example, if you fall in the 27 percent tax bracket and the value of the exemption for your mother equals $3,650, you would save $985.50 on your income taxes.
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