Tax Tip: tax breaks for those taking care of elderly parents(WDAY TV) - In your Tuesday Tax Tip: With the rising cost of healthcare and the expense of nursing homes or assisted living facilities.
By: WDAY Staff Reports, WDAY
(WDAY TV) - In your Tuesday Tax Tip: With the rising cost of healthcare and the expense of nursing homes or assisted living facilities. Many people are choosing to take care of elderly parents on their own and there could be some tax breaks for those folks.
CPA's say they're seeing more and more people taking advantage of these tax benefits whether their parents live independently or in the homes of their children. There are three things to remember to make sure you qualify.
First, your parents can't make more than $37-hundred dollars if you want to claim them as a dependent. That does not include income from social security or disability payments.
Second, as a provider you must provide more than half of their support, including what they receive from social security. So if they get $10-thousand dollars a year, you'll need to provide more than that on things like their medical expenses, care, food, housing and clothing.
Third, if more than one child is involved in caring for a parent, only one can claim the parent as a dependent.
PHIL CONDIT, CPA - President, Phil Condit P.C.: "Only one of them could claim them as a deduction, but they can rotate that among them. One person can take it one year and a second sibling the second years and so forth. That can be done."
Be sure to keep track of things like the cost of medication, mileage to and from medical appointments and even dental care.