IRS - Deduction - Dependent Question for those in the Know

[Beauty]

This is a question my mom and I were discussing last night...I have no idea and she is going to call her accountant....But my grandmother who lives with my mom is 87 years old. She gets a very small Social Security Check each month in the amount of about $800 dollars. Out of this check comes all of my grandmother's life insurance etc and leaves her with about $200 per month. My mom feeds her, pays the bills etc.....could my mother claim her as a dependent?? If she did would it have the chance to lessen my grandmother's Social Security Check?? Just wondering if anyone knows.

 

[Tina]

She meets 4 out of the 5 tests. I don't believe she meets the gross income test since her income amounts to $9600 per year. The limit is equal to the personal exemption amount. It is best to ask her tax professional for guidance. I am unsure of any exceptions for social security income.

 

[Dan Murphy]

As Tina said, always best to consult a professional, or use a tax program such as Turbo-Tax or Tax Cut. Those always walk you through such questions very nicely.

Here is dependent test from IRS site.

http://www.irs.gov/newsroom/article/0,,id=106180,00.html