Data confirm Steffee’s impressions. A review of census data by the Pew Research Center last year found that by 2009 about 7 million US households consisted of two adult generations, and another 4.2 million had three generations living under one roof.
Kristine and Kevin Tanzillo brought her mother, Nancy Haugen, to live in their Myrtle Springs, Texas, home about five years ago because she needed near constant care after spinal surgery.
Haugen, 73, receives Social Security and a small pension, but together they make for a “pretty meager’’ income, her daughter said. Although the Tanzillos paid Haugen’s mortgage and other living expenses before she moved in, it was only when they began sharing a home that the couple started claiming Haugen as a dependent.
Just sharing living quarters isn’t enough to qualify someone as your dependent, so it is important to make sure they meet the support test laid out by the Internal Revenue Service.
Andrew Schwartz, a certified public accountant in Woburn, said many of his clients claim parents as dependents.
Another potential tax benefit may come from medical expenses. The IRS requires that family medical expenses exceed 7.5 percent of adjusted gross income before they are deductible, a difficult threshold for most families to meet. The additional costs for an older parent, especially one with serious health concerns, may lift costs to above that line.
Adult children who have returned to the nest may also be considered dependents in many cases. Like the older generation, the main issue is whether you are providing their support.
Parents may claim children living with them as dependents up to age 19 automatically. Full-time students may be claimed up to age 24.
But plenty of young adults are living with their parents after those cutoffs, largely because of the economy.
Other relatives may also qualify as dependents if they live in the same home, and nonrelatives may also squeeze in under certain conditions.
Most tax preparation software asks simple questions that can help determine who qualifies, but for complicated living arrangements it may be helpful to consult a professional tax preparer.
