Question

Adult Senior in Assisted Living or Adult Foster Care

Forum|Forum|4 years ago
December 8, 2021
1 reply
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For the past several years, we have claimed my elderly mother-in-law as a dependent on our tax returns as she had resided with us throughout the last 35 years. This year, due to declining health and required medical attention, she has spent 4 months in our home, 4 months in assisted living, and the remaining four months in adult foster care. Her assets are minimal and are being depleted monthly due to expenses and we are supplementing the cost with our after-tax savings.

As she no longer physically resides with us, are we still able to claim her as a dependent?

If approved for Medicaid next year, will we still be able to claim her as a dependent on our taxes if she resides full-time in adult foster care?

Donna F 77

Fortunately a parent does not have to live with you all year. She would still have to meet the other criteria: citizenship, gross income less than $4,300, 50%+ of support is provided by you, not someone else's dependent, and not filing a joint return with someone else. The same would apply for when/if she is approved for Medicaid. If you are still providing more than 50% of her support when she has Medicaid, that criterion would be met. Here's a link that you may find helpful:

https://ttlc.intuit.com/community/children-dependents/help/does-a-dependent-have-to-live-with-me/00/26531

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I

ItotonboAuthor

If Medicaid will cover most of her foster care expenses (monthly payment to care provider) next year and we are to provide for the remaining expenses which may be less than 50% of total expenses, will we then have to file a separate tax return for my mother-in-law? Would her legal residence then be the foster care home?