Originally Posted by leeleyla
#1;Can I claim my parents as dependents if they are both US citizens, both retired and collecting Social Security benefits and live in a foreign country?
#2;My parents moved to a foreign country in June of 2013 and live in a house that my father owns. They both collect social security benefits but since they both retired at age 62, they don't receive full benefits. I help them pay for their every day expenses and wire money to them every couple of months.
#1;it depends; as long as you satisfy the following requirements, then you can claim your parents overseas as your dependents, qualifying relatives; they have to be U.S. residents for income tax purposes or residents of Canada or Mexico. If your parents are not from Canada or Mexico, they'll have to be considered U.S. residents for income tax purposes during the current tax year (2013) in order to claim them as dependents; Under the gross income test your parents must have less than $7,800($3,900*2) for 2013 in gross income,excluding soc sec benefits; Social Security benefits do not count; D you need to dtermine if you meet the support test. Add the total amount spent on your parents' support; this includes the amount spent on food, lodging, clothing, education, medical and dental care, recreation, transportation and other necessities but does not include income taxes, social security or medicare taxes or life insurance premiums. If you supply at least half of this, you can claim them as dependents;ALSO your parents must nt file a joint US return with the IRS.
#2;as mentioned abvoe