Tax Breaks for Taking Care of an Elderly Relative

– If an individual is providing care for an elderly parent or grandparent, they may be eligible for tax breaks.
– Medical expenses for the elderly individual can be included in the caregiver’s medical deductions if they qualify as a “medical dependent”.
– The caregiver may qualify for “head of household” filing status if they cover more than half of the household costs for the individual they are caring for and the individual qualifies as their dependent.
– Long-term care services and insurance premiums required by a chronically ill individual may also be included in deductible medical expenses. 1. If a taxpayer provides more than 50% of an individual’s support costs, the individual may qualify as a dependent.

2. The individual must either live with the taxpayer or be related to them in order to qualify as a dependent.

3. The individual must not have gross income in excess of an inflation-adjusted exemption amount to be considered a dependent.

4. The individual can’t file a joint return for the year in order to qualify as a dependent.

5. The individual must be a U.S. citizen or a resident of the U.S., Canada, or Mexico to be considered a dependent.

6. If the cared-for individual qualifies as a dependent, lives with the taxpayer, and physically or mentally can’t take care of themselves, the taxpayer may qualify for the dependent care credit for costs incurred for the individual’s care.

Caring for an Elderly Relative? You May Be Eligible for Tax Breaks