Also can I claim her as a dependent? Just need a little help with what I should file at the end of the year ?

Your filing status would be “Married Filing Jointly” and claim two exemptions (yourself and your spouse). I just read some of the earlier answers and do not pay attention to classy granny. You can not file as “Head of Household”. You only have two choices and it is either “Married Filing Separately” or “Married Filing Jointly”. Married filing Separately is the least desirable filing status. If you use any other status that you will have a “fraudulent return”. The key date is this: What is your martial status as of Dec 31, 2007?

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