Caring for an ailing loved one can be a difficult part of life for many people. Between support costs and expenses related to modifying your home for accessibility, it can really put a strain on your finances as well as your emotions.
But it doesn’t have to be so difficult. There are deductions you can take on your taxes to help cover these expenses, so that your elderly loved ones can get the best care right at home.
Here are some appropriate deductions that you may be able to take.
- Impairment-Related Medical Expenses: Have you had to modify your home in order to accommodate your loved one’s impairments? This can mean anything from installing a wheelchair lift on your stairs to widening your doorways. You can get a deduction for those costs, and it even extends to the installation of special equipment like grab bars.
- Dependency Exemption: If the elderly person you care for is related to you or lives with you, you may qualify to add them as a dependent on your taxes. If you provide more than 50% of their support costs, you may be entitled to this tax break.
- Dependent Care Credit: While this isn’t a deduction, you may be able to get additional funds back on your tax return if your loved one can’t care for themselves and lives with you. This helps offset the costs of caring for your loved one while you and your spouse work.
If you have any questions regarding your taxes in these troubling times, don’t hesitate to give Taxation Solutions, Inc. a call.