If you’re providing home care for an aging parent or loved one, the impact on your family’s finances can be significant. The good news is that there is tax help available for those who act as primary caregivers for senior parents and relatives. With tax season upon us, it’s a great time to see if you qualify for any extra returns.
The Child and Dependent Care Tax Credit (also referred to as the Elderly Dependent Care Credit) allows family caregivers to recoup the money spent on care for a qualifying adult who is incapable of caring for him or herself. If your family member lives with you for at least half the year and you are employed, you may also be able to deduct the cost of adult day care or similar programs if these programs care for your family member in your absence.
In addition, you may be able to claim your family member as a dependent, which will offset some of your tax burden. To qualify, it’s not necessary that the family member live with you, as long as you pay for at least half of his or her household expenses and they earned less than $3,950 in 2014. If multiple people contribute to your loved one’s support – for example, several siblings – you can submit form 2120 so that all of you can be reimbursed for part of your expenses.
If you claim a family member as a dependent, you can also deduct any medical expenses paid on their behalf that exceed 10 percent of your annual income. You can also deduct caregiver expenses not covered by a health plan, including but not limited to food, housing, medical care, clothing, transportation, bathroom modifications, prescription drugs, dental care, copays, deductibles, ambulances, bandages, eyeglasses and certain long-term care services.
To make sure that you’re receiving all possible tax breaks as a result of caring for your aging loved one, consult with a tax professional in Douglas County. He or she can ensure that you’re filing the correct paperwork to get the maximum possible deductions.
If you find that your loved one’s care needs require additional caregiving assistance or you could use regular respite, reach out to Home Care Assistance of Douglas County today. We are a trusted local home care provider, offering flexible hourly and live-in care in Douglas County. Call us today at 720-441-3522 for more information about our in-home care services or schedule a complimentary, no-obligation consultation.