Tax Deduction Consulting: Elder Care Parkersburg WV
Horizon Financial Group
Education: Ohio University, BBA FinanceCollege for Financial Planning's CFP Certification Professional Education Program
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Vealey Financial Services
Years of Experience: 43
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Tax Deduction Consulting: Elder Care
Care of the Elderly - Tax Deductions
As a society, we are growing older. This means many more people must care for the elderly in their family. Fortunately, there are tax deductions available for this.
If you have taken charge of any elderly member of your family or friends, you may be eligible for tax deductions. Care of the elderly deductions are similar to childcare deductions and can be significant when filing your taxes. Just like you would pay for daycare for a child, adult daycare or nursing homes can be costly. Keeping receipts of these expenses can help when it comes to deducting care of the elderly from your taxes.
To be eligible for care of the elderly deductions, you and the elderly member must meet certain requirements. The elderly individual you care for must be claimed as your dependent. The elderly dependent must not be able to care for or reside by themselves. This includes mental and physical incapacities. The elderly must reside with you and you should provide at least fifty percent of their living income to qualify. The reason for paid care must be so that you can either work or search for work, and you must earn an income. Additionally, the place that the elderly are being cared for must be certified.
The IRS only allows certain people to care for the elderly if you are claiming their care as a tax deduction. The person who takes care of the elderly can not be one of your dependents. If you pay your ten year old son to take care of the elderly person, this cost is not eligible for deduction. If you meet all qualifications, you should file this deduction on Form 1040 Schedule R or Schedule 3.
In addition to hard expenses you incur as a result of caring for the individual, you may deduct other items as well. Expenses from the elderly living with you, such as travel to and from the place of care, and the cost of providing a place to live are deductible. The cost of care deducted must not exceed five percent of the caregivers annual in...