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

[amberite.livejournal.com]

I've been having conversations on money and life-position with my 'kin friends locally, and have sort of come to the conclusion that I support the right of fellow strangelings (kin and awakened human alike) to be bourgeois parasites. I mean, someone's gotta do it. :D

[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).

[shalora.livejournal.com]

I concur with [Unknown site tag]. It's not like you've gone digging through musty tomes of tax law trying to find some insignificant loopholes from which you can wrangle another few dollars. This is a legitimate break given for a legitimate need. If you are providing more than half of the support for another person as well as yourself, you must by default need to have more of your income than if you were the only person you were caring for. So take it. I have three words of advice: documentation, documentation, documentation! (yeah, not paranoid about audits or anything...)

[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.

[starlightforest.livejournal.com]

See my comment (http://www.livejournal.com/users/tass/252877.html?thread=558541#t558541) to mal_akh. I'm not actually providing any support, it's just that he isn't providing any either.

[twopiearr.livejournal.com]

Tell you what - when you get to be one of the 1% that owns 60% of the wealth in this country, you should absolutely beat yourself up for even contemplating such a thing.

Until you ascend to such heights, I suspect it's all good.

[starlightforest.livejournal.com]

lol.

[nsingman.livejournal.com]

I'm a firm believer in a flat tax, with no deductions for charity, mortgage interest, dependents, or anything else. But the law is what it is, and I take advantage of every legal thing I can to reduce my taxes. An honest person can play by the existing rules and agitate to change them at the same time.