Crucial Tax Info for Families Providing Senior Home Care

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Family caregivers may discover a few advantages in the form of federal tax breaks. There are a number of deductions you might be able to take if you provide Forth Worth in-home care for an elderly loved one, including the following. 

Senior Dependents

If you pay for more than half of your loved one’s housing, food, and other living expenses, he or she may qualify as a dependent. Your loved one also cannot have an annual income that exceeds $4,500. Even though more than one family member might be sharing the cost of your loved one’s upkeep, only one of you can take the dependent benefit. 

Medical Costs

You can deduct medical costs paid on behalf of your loved one if he or she qualifies as a dependent and the costs are more than 10 percent of your annual income. If your loved one is over age 65, the restriction reduces to 7.5 percent of your income. 

Miscellaneous Deductions

Other possible deductions include clothing, transportation, and home modifications based on medical need. Out-of-pocket expenses for medical visit copays, prescription medications, and hearing or visual aids are also deductible. The cost of smoking and weight-loss programs qualify as deductions along with wigs worn due to medical conditions or treatments. 

Necessary Modifications

Ramps for wheelchairs, grab bars or handrails, step-free bathtubs or showers, widening doorways or hallways, or installing lifts are all modifications that are tax deductible. The improvements might be made in your loved one’s home or your home. However, the changes cannot increase the overall value of the property. 

Energy-Saving Improvements

Family members who pay the cost of ensuring an elderly loved one’s home is energy efficient may qualify for a deduction. Traditional improvements such as adding insulation, a central air conditioning unit, or upgraded doors and windows come with a deduction of 10 percent of the cost up to $500. Alternative improvements like solar water heaters, solar panels, or other features allow for a 30 percent deduction. 

To learn more about the tax breaks available to family caregivers, reach out to Home Care Assistance. We are a leading provider of live-in and hourly care in Fort Worth, and we also offer comprehensive Parkinson’s, stroke, and dementia care. Fort Worth family caregivers trust and rely on Home Care Assistance to assist seniors with exercise, prepare nutritious meals, and help with a wide array of other daily tasks. For more information on our elder care services, please call (817) 349-7599 to speak with one of our experienced Care Managers.