Caring for an elderly loved one could have an impact on your finances, including your taxes. There are various deductions and credits you may qualify for. Take a look at some of the tax credit tips family caregivers should be aware of.
1. Change Your Filing Status
Family caregivers who aren’t married can change their status from single to head of household if they are caring for a senior loved one. However, you must also claim your loved one as a dependent to change your filing status. If you do not live in the same household as your loved one, you can still change your filing status to head of household as long as you have covered more than half of the costs of keeping up your loved one’s home during the year. These costs may include rent, utility payments, medical bills, transportation, food, and other expenses that pertain to your loved one and his or her home.
Caring for an elderly loved one can be challenging, especially if you also have to manage your taxes. Families who need additional assistance caring for an elderly loved one should consider hiring a professional caregiver. Fort Worth, Texas, seniors and their families trust in Home Care Assistance to provide high-quality in-home care on an as-needed basis. Our caregivers take pride in helping seniors remain healthy while promoting their quality of life.
2. Share Costs with Siblings
If you and your siblings share the costs of your loved one’s daily expenses, you could be eligible for a tax credit. Keep in mind tax credits generally go to the sibling who covered at least 50 percent of the costs. However, there may be some tax credits you are eligible to receive. Speak with a qualified tax professional who can help you find ways to offset the costs you have incurred while caring for your loved one. Since only one sibling can claim a parent for the tax year, you and your siblings need to decide who that sibling will be to prevent confusion and other negative emotions.
If you need a break from your caregiving duties to consult a legal expert, consider hiring a professional caregiver. In Fort Worth, home care providers can benefit aging adults in a variety of ways. From cooking nutritious meals to offering timely medication reminders, the dedicated caregivers at Home Care Assistance are available to help your elderly loved one 24 hours a day, 7 days a week.
3. Deduct Costs for In-Home Care
Hiring someone to provide your loved one with in-home care may cost you extra money, but you could earn a tax credit for this expense at the end of the year. If your loved one pays for some of the costs pertaining to in-home care, you may still be eligible to deduct this expense as long as you covered at least 50 percent of the costs. Hiring an in-home caregiver to step in while you are at work or unable to provide care for your loved one is an expense that could be offset.
4. Save Your Receipts
Family caregivers who qualify for tax credits will need to have receipts that back up their claims. The documented proof can include:
- Gas receipts
- Utility payments
- Grocery receipts
- Respite care bills
- Home modification costs
- Medical bills (that aren’t covered under your loved one’s insurance)
In addition to receipts, keep credit card and bank statements that show proof of payment for a service your loved one needed, as well as products you have purchased for him or her throughout the year.
Much like doing your taxes without professional assistance, caring for an elderly loved one on your own can be challenging. Families who find it difficult to care for their aging loved ones without assistance can benefit greatly from professional respite care. Fort Worth, Texas, family caregivers who need a break from their caregiving duties can turn to Home Care Assistance. Using our proprietary Balanced Care Method, our respite caregivers can encourage your loved one to eat well, exercise regularly, get plenty of mental and social stimulation, and focus on other lifestyle factors that promote longevity. To learn about our premier in-home care plans, call us at (817) 369-8525 today.