are elder care expenses tax deductible
If you and your parent meet IRS requirements, you'll be able to claim an added personal exemption on your income tax return. Then there are possible deductions and credits. If you pay medical expenses for a dependent parent, you may be able to deduct some of those costs. Hire a caregiver to help you out, and a credit could cut your tax bill a bit more. Care for a person with memory loss, for their health and safety, is also a deductible medical expense. When you pay someone to take you to a medical appointment (via ambulance, taxi, private car, etc.), the cost is considered a tax deductible medical expense. Nearly 25 percent of family caregivers spend $10,000 or more. While taking care of aging parents can get expensive, caregivers may qualify for some financial relief at tax time. The key to Internal Revenue Service assistance in caring for an elderly relative is whether you can claim the person as a dependent. If you're eligible to take the tax break, you can choose to claim elder care either as a medical expense or as dependent care. If your mother is your dependent, you are eligible to deduct elder care as either medical expenses or dependent care, subject to IRS rules on the nature of the care. Medical Expenses Deduction. If your mother is your dependent, you can claim any medical expenses that you paid for her that were not reimbursed by insurance, including any elder care expenses. This allows you to deduct a wider range of expenses, including long-term care and nursing services. Income tax deductions from medical expenses you pay MAY save you money when you file your income tax return. If you are in the lowest income tax bracket, you may save in taxes, an amount equal to 10% of the cost of the medical expense. Analyzing the tax situation using just home care expenses: Using 25 hours a week of caregiver services. The annual tax savings for a person with $50,000 annual income may be about $3,200. when compared to a person who uses no homecare services. 2. Again, Analyzing the tax situation using just homecare expenses: You can also include in medical expenses part of the amount you pay for that attendant’s meals. Divide the food expense among the household members to find the cost of the attendant’s food. Then divide that cost in the same manner as in the preceding paragraph. Below is the IRS Excerpt that describes the type of care that is deductible: IRS Excerpt: You can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Tax deductions for homecare related expenses for your aging parents. Millions of adult children find themselves looking after aging parents. Tax laws offer some help, as long as you and your folks meet the criteria. The key to Internal Revenue Service assistance in caring for an elderly relative is whether you can claim the person as a dependent.
Yes,you are eligible to deduct elder care as either medical expenses or dependent care, subject to IRS rules on the nature of the care.