A $3,650 dependency exemption can be claimed for each parent in 2009 if criteria is met for five specific tests. The most relevant of these are the $3,650 gross income test and the "greater-than-50%-support" test. If the exemption phaseout applies, some or all of the benefits will be lost.

If you are single and a parent qualifies as your dependent, you may be able to file as head of household and receive the lower marginal tax rates and larger standard deduction of that filing status. You must pay more than 50% of the cost of maintaining the household in which your parent resides; however, you do not need to live in the same house.

If you pay qualified expenses for a parent who is physically or mentally incapable of self-care and you live in the same house as your parent, you may be able to claim a dependent care credit. To qualify, the care must be necessary in order for your to hold gainful employment, though the care can be received either inside or outside the home.

For most taxpayers, this credit is limited to 20% of the first $3,000 ($6,000 for two qualifying dependents) of eligible expenses incurred. If you provide more than half of their support for the year, you may also deduct medical expenses paid on behalf of your parents, even if they do not qualify as your dependents.