Question

1. If Bill provides over 80% of the support and care for Claudia, his 75 year old mother. Claudia has taxable income and unearned income of $1,700. Where would we report this income on a tax return, or do we even need to report this information, do we just put Claudia as a dependent and leave it as that or do we need another form for her income/80% support and care for her?

Answer 1

Solution :

A person shall be declared as a "dependent" if they are a qualifying relative. Mother is a qualifying relative. Hence, Claudia can be declared as a dependent.

More than half of the cost of keeping should be borne by the caregiver. Since Bill bears 80% of the cost, he is eligible to claim his mother Claudia as a dependent.

The dependents aged 65 or more should file the return if :

• The unearned income was more than $1,100 or
• The earned income is more than $12,200

Since, Claudia's unearned income is more than $1,100 she should file a separate return for the year 2019.