taxes

[arethinn]

My father is looking at possibly not working anymore after July, or at least by the end of the year. This is fine because he is 64 and would rather not have been working the past ten years, even, except for the buildup of retirement savings (which there isn't nearly enough of now that interest income has utterly taken a shit, but that's something else again).

As mine is the only other income in the household, and his interest income is only a fraction of my earned income, this presents us with an interesting possibility: for me to claim both my parents as dependents, since technically, I would be providing over half their support (the tax definition of "dependent"), and thus reduce my own taxes through the deductions you get for dependents.

While this sounds interesting, and certainly amusing, it also makes me fidgety. It's legal, but isn't this just the sort of tax dodge I shake my head and cluck at "the rich" for doing?

Comments

[dreamfall.livejournal.com]

The reason it's legal is because the government realizes that if you're providing more than half his support, you need the tax break. Don't feel bad about it at all. Just do be aware that it does increase the possiblity of audit, so make sure you can provide the documentation (rent/mortgage payment receipts, etc).

[starlightforest.livejournal.com]

But see, I wouldn't be providing any actual support. It would just look that way because I would be making the only money in the household. He wouldn't actually be taking it from me. That's why I feel weird trying to claim something that isn't actually going on.

Also, we have no rent or mortgage payment, so that could be interesting.