How to address the caregivers financial ability to provide quality of in-home care to the care-recipient / loved one.
Tax deductions to save money for caregivers:
- Medical Expenses
Nearly 100 medical costs can be deducted, related to the diagnosis, treatment, cure or prevention of disease or costs for treating any part of the body. Those include equipment, services and supplies, ranging from glasses to eye surgery to acupuncture to prescriptions. Dental expenses are also among the costs that some people ignore, including dentures and artificial teeth.
- Long-Term Health Care Costs
An often-missed expense is the amount paid for long-term care services and long-term care insurance (that's a more limited deduction, depending on age). Rehabilitation, therapeutic, preventative and personal care services are among those that qualify as long-term care services, if your family member is chronically ill and if it's part of a plan set by a health care practitioner.
From weekly doctor's appointments to out-of-town visits with a specialist or for a procedure, the miles you log while driving your parents to meet their medical needs can be deducted. You can take 19 cents per mile driven for medical purposes in the 2016 tax year.
- Home Improvements for Aging Adults
Investing in ramps for a wheelchair-bound parent, handrails and grab bars in the bathroom, or a stepless shower can be part of a deduction.
- Energy-Saving Home Improvements
Whether or not you did this in the course of being a caregiver, any energy-saving changes are eligible for a credit.
- Mortgage Interest
- State and Local Sales Tax
- Estate Tax on an Inherited IRA
- Charitable Contributions