For many years Baby Boomers were consumed by ‘empty nest syndrome’ when their children moved out and they had fewer responsibilities. Anxiety centered around everything from what to do with the rest of your life to how to use the extra space and whether your should move into a smaller home.
But then The Recession hit, and college graduates realized how much they still owed for their college educations. Thousands of young adults lost their jobs and had no choice but to move back home.
Aging parents, who did not have the means to support themselves added to the pressure and Baby Boomers became the ‘sandwich generation.’ Everyone, it seemed, was turning to them for help.
The result was an increased number of parents who had adult relatives living with them. These days, in some parts of the country, housing is so expensive adult children cannot even afford a place of their own so mom and dad are a great place to stay while they try to save money.
Love and compassion make it tough to say no, but there are some practical things to consider, such as what impact this will have on your taxes.
Claiming an adult dependent on your taxes is possible but the IRS has a specific set of factors that have to be considered for a qualifying relative.
Factors such as age, relationship, income, and how much support you actually provide are all part of the equation.
Noreen Murphy Law for all your estate planning needs, if you need help with your estate, elder law or Veterans benefits please give her a call.