8/2/2019 Uncle Sam Gives Gift to Families Caring For Elderly Loved Ones

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UncleSamGivesGifttoFamiliesCaringForElderlyLovedOnesUnknowntaxbreaksforcaregivingcansaveyouabundle!(March2012)Morethanthree-fourths(78%)oftheelderlywhoreceivelong-termcareintheU.S.aregettingthatcarefromunpaidfamilyandfriends.Thesecaregiversaretrappedinaneconomicstruggle-payingtheirownbillsinadditiontoout-of-pocketexpensestocareforanelderlylovedone.Infact,arecentsurveyshowsmorethan40%ofcaregiversarespendingmorethan$5,000ayearcaringforalovedone.47%ofworkingcaregiversreportanincreaseincaregivingexpenseshascausedthemtouseALLorMOSToftheirsavings.ThatswhyUncleSamprovidestaxbreaksifyoucareforanelderlylovedone-taxbreaksmanyfamiliesdontknowabout.Whetheryoureprovidingcareyourself,oryouvehiredacaregiverforanagingparent,youshouldtakeadvantageofthetaxbreaksthatareatruegiftinthesetroubledeconomictimes,saysPeterRoss,co-founderandCEOofSeniorHelpers,anationalin-homecarecompany,withofficesinyourcity.EvensomethingassimpleastakingMomorDadtothedoctorcanbeataxdeduction.

TopTaxBreaksForElderlyCare:

ClaimyourparentasadependentYourparentsincome,excludingSocialSecurity,mustbelessthantheamountofthepersonalexemption.For2011,thepersonalexemptionwas$3,700.Thisyearsexemptionrateis$3,800.Plus,youmustprovidemorethan50%ofaparentsfinancialsupport.

Ifaparentliveswithyou,youcanincludeapercentageofyourmortgageandutilities.Youcanclaimmorethanoneparentasadependentifbothmeettheincomeandsupporttests.

DeductyourparentsmedicalexpensesIfyoucontributetoaparentshealthcareexpensesandpaythehealthcareprovideryourselfversusgivingyourparentthemoneytopay,youmayqualifytodeductcosts,evenifyoucantclaimtheparentasadependent.Nearly100%ofindividualmedicalexpensescanbededucted,includinghearingaidsandprescriptionmedicines.MileageincludingdoctorappointmentsandoutoftownvisitstoaspecialistDentalexpensesincludingdenturesandartificialteeth

Toclaimmedicalexpenses,youmustprovideatleast50%oftheparentsfinancialsupport,butyoudonthavetomeettheincometest.Deductionislimitedtomedicalexpensesthatexceed7.5%ofyouradjustedgrossincome.Qualifiedexpensesincludethecostofanursinghome,in-homehealthcare,dentalcareandprescriptiondrugs.Youcanincludeyourownun-reimbursedmedicalexpenseswhencalculatingtotalcosts.Caregivershaveoneofthemostemotionallydemandingjobsoutthere,saysRoss.Itsodemandingthatmorethanathirdofsurveyedcaregivershavebeenforcedtoquitjobs,takeearlyretirement,reducehoursortakealeaveofabsencetocareforanelderlylovedone.Wedliketobeabletoshouldersomeoftheburdenoftaxseasonandhelpputsomemoneybackintheirpocketsbypointingoutsomeofthemostoverlookeddeductions.

OtherCaregivingDeductionsMostOftenOverlooked(Source:AgingCare)Pleasenote,itsimportanttocheckspecificguidelinesforqualifyingexpenseswhenfilingyourtaxreturn(www.irs.gov).

Long-termhealthcarecostspeopleoftenoverlookthatyoucanwrite-offlong-termcareservicesandlong-termcareinsurance(dependingonage).Homeimprovementsforagingadultsinstallingwheelchairramps,handrailsandgrabbarsinbathroomsaregoodexamplesofdeductions.Itdoesntmatteriftheseimprovementsareintheseniorshomeortheadultchildshomeaslongastheimprovementsdontaddvaluetothehome,youcanwritethemoff.

8/2/2019 Uncle Sam Gives Gift to Families Caring For Elderly Loved Ones

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EnergysavinghomeimprovementsHighefficiencyfurnaces,insulation,windowsandevenweatherstrippingareincluded.Formorespecifics,visitwww.energystar.gov.Mortgageinterestwhetheritsadultchildrenortheseniorshomeloans,constructionloansorhomeequitylinesofcredittheycanallbedeductions.EstatetaxonaninheritedIRA-IfyouinheritedanIRAfromyourparents,youcouldtakeadeductionforfederalestatetaxespaidonIRAincome.Charitablecontributionsyoucandeductnotonlythevalueofitemsyoudonatedtocharity,butalsoout-of-pocketcostsrelatedtovolunteering.Tellthisstorywithafamilystrugglingtocareforanelderlylovedone.Interviewseniorcareexpertsaboutcostsavingwaystopayforcare.###OtherWaysToCutCostsIfCaringForAnElderlyLovedOne:

VeteransBenefitsVeteranscanearnupto$1,800amonthinVApensionmoneytopayforin-homecare.SeniorHelpershelpsfamiliesfindresourcestogetthesebenefits.ContactYourLocalAreaAgencyonAgingtolearnaboutgovernmentassistanceprogramsthatprovidelowincomeseniors,eligibleforMedicaid,moneytopayforin-homecare.Sources:Thompson,L.Long-TermCare:SupportforFamilyCaregivers.Long-TermFinancingProject.,surveybycaring.com,surveybyVolunteersofAmerica,NationalFamilyCaregiversAssociation,AARP,2008,AgingCare,surveybyNationalFamilyCaregiversAssociation,2009

AboutSeniorHelpers:SeniorHelpersconnectsprofessionalcaregiverswithseniorswhowishtoliveathomeasopposedtoanursingorassistedlivingfacility.Thecompanyhasnearly300franchisesin40statesandoneCanadianprovinceofferingawiderangeofpersonalandcompanioncareservicestoassistseniorslivingindependentlywithastrongfocusonqualityoflifefortheclientandpeaceofmindfortheirfamilies.SeniorHelpersstrivestobetheleadingcompanionandpersonalcareproviderthatoffersdependable,consistentandaffordablehomecare.Formoreinformation,pleasevisit:http://www.seniorhelpers.com/