Tax Tips for Caregivers

According to IRS Publication 502, caregivers are entitled to the following benefits:

  • Dependents – You can claim your parent or other loved one as a dependent if you provide more than half the support for a relative. This includes nursing home and assisted living expenses if you are helping with financial support.
  • Wheelchair – If your loved one is in a wheelchair, the cost of the chair is tax deductible as long as the use is primarily for the relief of sickness or disability and not strictly for transportation to and from work.
  • Transportation and Medical Mileage – If your loved one can’t travel alone, you can also deduct transportation expenses like mileage, parking, tolls, and even meals and lodging if your main reason for being there is to get medical care.
  • Homecare, nurses, in-home therapists and adult day care expenses are all deductible.
  • Medical expenses include doctor visits, surgeries, lab work, and supplies like false teeth or catheters.

To claim these deductions, you must have contributed more than half of a person’s support, even if you are sharing responsibility with other family members. Secondly, your loved one must be a U.S. citizen or a resident of the United States, Canada, or Mexico. Lastly, your loved one cannot have filed joint income-tax return for the same tax year unless it was filed only to claim a refund.

Contact the Elder Law Firm of Clements & Wallace, P.L. for more information.