Tax Rules Family Caregivers Need to Know About

By Anneliese Rosar, 9:00 am on

If you provide home care in Allen for an elderly loved one, you may be wondering how this affects your taxes. Those who are used to filing their taxes so they get their return in early February will want to note the Internal Revenue Service will not release any tax refund before the end of February for most Americans. The first day to file in 2017 is January 23rd. Family caregivers should follow these tax-related guidelines.

Claiming the Senior as a Dependent

If you have paid out at least 50 percent of your loved one’s expenses, you can claim him or her as a dependent. Your loved one must be a United States citizen and cannot be filing jointly with anyone else. He or she also has to make very little money.

Deducting Medical Travel

You can claim the mileage you drove to take your loved one to the doctor. You must first be able to claim your loved one as a dependent, then you can generally deduct 54 cents per mile. You can also deduct other types of medical travel.

Deducting Medical Home Improvements

Though most home improvements are not deductible, if you made the changes for medical reasons, they are typically deductible. These improvements must be more than 10 percent of your adjusted gross income. In some cases, you can also deduct the cost of keeping up certain items that are medically needed.

Deducting Home Care

If you paid a professional Allen home caregiver to provide care for your loved one so you could take a well-deserved break, you can generally deduct those expenses. To qualify, your loved one’s doctor must have recommended the plan. As the family caregiver, you may be able to take several deductions. However, be aware that if you are paid as a family caregiver, you must claim that income. 

To learn about additional tax rules for family caregivers, reach out to Home Care Assistance of Allen, TX. Our dedicated caregivers are available 24/7 to assist seniors with a wide array of daily tasks, and we also offer specialized Parkinson’s, post-stroke, and dementia care Allen, TX, families can count on. For more information and to schedule a complimentary consultation with one of our qualified Care Managers, please call (972) 548-0392 today.

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