Claiming my parent as a dependent: Is Turbotax mistaken?

Factual Questions
1

In preparation to e-file my taxes, I started putting some of my information into Turbotax today. I was asked if I had any family members who might qualify as dependents and I decided to run my mother through to see if she qualified. (A little background - my mother has been unemployed since last May, she lives with me, and I support her financially. I myself am single.) Turbotax asked me three questions about her, which I answered thusly:

  1. Did she make more than $3200 in 2005? (Yes, her gross income was about $4300)
  2. Did she live with me the entire year? (Yes)
  3. Was she married at any time in 2005? (No)

According to Turbotax, I can claim her as a dependent and receive a tax exemption for her. Turbotax also tells me that, by claiming her as a dependent, I qualify to file as head of household instead of as single - these two things, together, would save me about $700 on my taxes this year. However, according to the 1040 instructions book I have on hand and some other tax websites I checked, I can’t claim her if she made more than $3200. I realize i’m probably not going to get a definitive answer from a tax lawyer by asking here, but just in case anyone more knowledgeable than me can help me out: Is Turbotax mistaken about my ability to claim her, or is there some nuance to the tax laws regarding dependent parents of which I am unaware?

2

I’ve been looking into a similiar thing myself. I don’t know all the intricacies, but my WAG is that the fact that she lived with you counts as a form of support.

I think the rules are that regardless of her income, if you provide more than 50% of her support, you can claim her as a dependent. Providing housing must count for something.

3

I went to www.irs.gov and looked at the instructions for Form 1040. Based on the way I read the instructions you cannot claim her as a dependent if she made over $3200 unless she is permanently and totally disabled, in which case the limit does not apply.

Also, you should keep in mind that if you claim her as a dependent on your tax return, she will not be able to claim herself as a dependent when she files her taxes.

4

iI think that whether or not you can claim her as a dependent has nothing to do with your filing as head of household. Recheck that on 1040 instructions. That may be where the conflict is.