Meeting 50% support test

[jack21]

What is the name of your state? Ohio

My parents are in a Long Term Care facility. Their social security and veterans benefits only cover a small portion of the cost. I am making up the difference. Being unmarried, I plan to claim them as dependents, file as Head of Household, and itemize their medical expenses.

The question regards the 50% support test. While I clearly paid for more than half of their support, instead of paying their expenses directly, I deposited the funds into my father's checking account, and he wrote the checks.

In the event of an audit, am I going to have a problem with the IRS saying that the money was a loan or gift, even though its clear that they would not have had the funds to pay for their care without my contribution?

Thanks.

P.S. It just never occurred to me until tax time. For 2007, I'm writing the checks directly. What is the name of your state?

 

[LdiJ]

What is the name of your state? Ohio

My parents are in a Long Term Care facility. Their social security and veterans benefits only cover a small portion of the cost. I am making up the difference. Being unmarried, I plan to claim them as dependents, file as Head of Household, and itemize their medical expenses.

The question regards the 50% support test. While I clearly paid for more than half of their support, instead of paying their expenses directly, I deposited the funds into my father's checking account, and he wrote the checks.

In the event of an audit, am I going to have a problem with the IRS saying that the money was a loan or gift, even though its clear that they would not have had the funds to pay for their care without my contribution?

Thanks.

P.S. It just never occurred to me until tax time. For 2007, I'm writing the checks directly. What is the name of your state?

You will probably be ok....but one wrinkle is going to be the medical expenses. You can easily prove that you are providing more than 50% of their support, but its going to be hard to prove whose money (yours or theirs) paid the medical expenses.

Its wise that you plan to write the check directly from now on.