Claiming Parent as Dependent or Claiming His Med Expenses

[Ronlynn1]

What is the name of your state (only U.S. law)? TX

My Father passed away in August of 2008. I am in the process of doing his 2008 return. His only income was retirement from his employer and his SS benefit check.

In Dec of 2006, we moved my Father into a Medical Assisted Retirement Village. At that point, I transferred what money he had to a separate bank acct of mine and I basically took care his finances. From Dec of 2006 through Aug 2008, I paid in excess of $45,000 for various healthcare expenses and other misc bills as he was in and out of the hospital 4-5 times.....

We did not claim any of the med expenses in '07, which we should go back and do. However, what is the best way for me to handle the tax situation now, for '08 ? Based on thr answer is probably how I should go back and do an amended '07 return.

Should I claim him as dependent on mine since I clearly took care of about 80% of his expenses during '07 & '08 ? And/or claim the expenses as medical expenses ? If I do that, would that be on his '08 return or mine ?

Thank You,
Ron

 

[davew128]

I would question if you could claim his expenses at all.

First off, under no circumstances does he qualify as your dependent. I seriously doubt his social security and retirement was under the exemption amount of roughly $3,400.

Then you say you paid $45k on medical expenses over the course of three years. You also say you took his money and put it into your account. While he doesn't need to be a dependent for you to claim his medical expenses, you DO have to show that you provided more than 50% of his support. I have a hard time believing that between his own money and the money he earned that you paid for more than half of his support with your own money than his.

 

[LdiJ]

What is the name of your state (only U.S. law)? TX

My Father passed away in August of 2008. I am in the process of doing his 2008 return. His only income was retirement from his employer and his SS benefit check.

In Dec of 2006, we moved my Father into a Medical Assisted Retirement Village. At that point, I transferred what money he had to a separate bank acct of mine and I basically took care his finances. From Dec of 2006 through Aug 2008, I paid in excess of $45,000 for various healthcare expenses and other misc bills as he was in and out of the hospital 4-5 times.....

We did not claim any of the med expenses in '07, which we should go back and do. However, what is the best way for me to handle the tax situation now, for '08 ? Based on thr answer is probably how I should go back and do an amended '07 return.

Should I claim him as dependent on mine since I clearly took care of about 80% of his expenses during '07 & '08 ? And/or claim the expenses as medical expenses ? If I do that, would that be on his '08 return or mine ?

Thank You,
Ron

It is not necessary for him to be your dependent in order for you to claim his medical expenses on your schedule A, assuming that you paid them with your money, rather than his.

 

[Ronlynn1]

So if I'm understanding this correctly, being able to show that I took care of more than 50% of his support doesn't include the medical expenses that we paid out in all of '07, half of '08 ? Medical is not necessarily saupport.

Sure, his retirement and SS took care of the majority of his non-medical support on a monthly basis.

So, by process of elimination here, I should just claim the medical expenses on HIS '08 return and do the same for an amended '07 for him - since it was his money and I was only managing it ?

I've dished out some of my own money over his 20-month illness, but only after his money was gone and it was only a few thousand.... so I guess that will go on my return.

Appreciate the feedback.
Ron

 

[davew128]

So if I'm understanding this correctly, being able to show that I took care of more than 50% of his support doesn't include the medical expenses that we paid out in all of '07, half of '08 ? Medical is not necessarily saupport.

It is is every definition I ever saw.

Sure, his retirement and SS took care of the majority of his non-medical support on a monthly basis.

Which was my point.

So, by process of elimination here, I should just claim the medical expenses on HIS '08 return and do the same for an amended '07 for him - since it was his money and I was only managing it ?

Yes. You could never claim a deduction on your return for paying HIS expenses with HIS money.

I've dished out some of my own money over his 20-month illness, but only after his money was gone and it was only a few thousand.... so I guess that will go on my return.

No, you missed the point. In order for you to claim his medical expenses on your return that YOU paid, YOU had to have provided more than 50% of his support. You didn't. It sounds like his money and income provided nearly all of his support and you chipped in a couple thousand once his resources could no longer sustain him.