Many family caregivers don’t realize they may be able to benefit from tax write-offs. If you are caring for an elderly loved one, take the time to determine your eligibility for tax benefits because you could end up saving thousands of dollars. The staff at Philadelphia Home Care Assistance discusses a few ways the tax code can benefit family caregivers.
1. Medical and Related Expenses
Depending on the circumstances, you may be able to claim your loved one as a dependent for tax purposes, which could entitle you to deduct medical and dental expenses not covered by insurance. These expenses can include out-of-pocket costs for prescription and over-the-counter medications and the cost of transportation for medical visits.
2. Child and Dependent Care Credit
You may be able to deduct the cost of hiring a Philadelphia, PA, home caregiver to care for your loved one, allowing you to work or look for employment. If you qualify, you may be able to deduct up to 35 percent of the expenses. ask your tax advisor about this deduction if:
- You earned income during the year
- Your loved one was unable to mentally or physically care for him or herself
- Your loved one can be claimed as a dependent on your taxes
3. Long-Term Care Services
If your loved one requires Philadelphia elderly care, attends adult day care services, or lives in an assisted living community so you can continue to work, you may be able to deduct some of these expenses, including clothing, housing, and food. To qualify, you must provide at least half of your loved one’s support. If you share these expenses with siblings or other family members, keep an accurate record of the portion you pay for.
4. Miscellaneous Expenses
You may be able to deduct expenses related to caring for your loved one that do not fall under the category of medical or dental expenses. For example, you may be able to deduct:
- The cost of modifications to make the home accessible for your loved one
- Personal care items
- Food and lodging for out-of-town medical visits
- Durable medical equipment
Even small expenses can add up throughout the year, so be sure to save all of your receipts and consult a tax professional.
Family caregivers should consider these factors when preparing to file federal income taxes. For more tips on tax write-offs and finance-related matters, reach out to Home Care Assistance. Our dedicated caregivers can help your loved one manage a wide variety of daily household tasks, and we also provide specialized stroke, dementia, and Alzheimer’s care. Philadelphia families can contact a reliable Care Manager at (215) 645-4663 to learn more about our elderly care services and schedule a free consultation.