We’ve all heard the term, tax breaks, but did you know there are incentives specifically for those caring for seniors?
As a caregiver, you can claim your parent(s) as a dependent and utilize that extra money to help pay for their medical, dental, and/or long-term care expenses. This can happen without insurance reimbursements, and you can deduct the expenses that are more than 7.5% of your adjusted gross income.
Additionally, if you are paying for in-home or adult day care so that you can work yourself, you may also qualify for the Dependent Care Tax Credit. This can be worth up to $4,000.
Finally, if you have a Flexible Health Savings Account you can also use it to pay your parent’s medical expenses if they do qualify as a dependent.
For more information on these credits, you can visit IRS.gov. You can also always reach our partners at Next LLC for more information regarding your financial future at 216-241-2880.