When determining if parents can be claimed as dependents, the income test says a gross income of less than $3,500. Is their pension and Social Security counted as gross income?
Generally, any taxable income is included in gross income. Pension income is included as gross income. However, only the taxable portion of Social Security is included in gross income. If your parents are married and file a joint return, they must combine their incomes and their Social Security and/or equivalent tier 1 railroad retirement benefits when figuring the taxable portion of the benefits. The taxable amount of the benefits is figured on a worksheet in the Form 1040 (.PDF) or 1040A Instruction Booklet (.PDF).
Related Questions
- When determining if parents can be claimed as dependents, the income test says a gross income of less than $3,500. Is their pension and Social Security counted as gross income?
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