TAX TIP OF THE DAY... deduct your Dad
Dependency rules have radically changed over the years. So ignore your prior knowledge in this area. If you support a parent, it may be possible to claim that parent even if they don't live with you. A good candidate for this deduction is a parent on social security with no more than $4k of additional income. The rules are a bit tricky to navigate. But it's a great deduction that may even extend to Head of Household benefits for certain children. There are planning opportunities based upon which parental living expenses you choose to pay for.
Myth #1: you can only claim children as dependents
Myth #2: you always must live in the same house as your dependent
SHARE WITH A FRIEND.
If you need any help... www.baboiancpa.com