You might be able to take a dependency deduction for a parent or parents, if several tests can be passed.
They must be residents of the U.S.
You must provide over half of a dependent’s support during the year. If a parent lives with you, putting a value on the housing you provide may help to meet the support test.
Each dependent’s gross income must be below the exemption amount: $3,000 in 2002, $3,050 in 2003.
For the purpose of the last test, gross income does not include money that’s excludible from income. Thus, if your parent’s Social Security benefits are untaxed, they won’t count towards the $3,000 or $3,050 limit. In addition, someone claimed as a dependent can’t file a joint tax return with someone else. Therefore, if both of your parents are still alive and married to each other, they would have to use the “married, filing separately” status for you to get a dependency deduction.
