Claiming a loved one as a dependent can be a good way to offset the loss of income when you become a full-time caregiver. If you are planning to take this path, there are certain qualifying expenses that you can include as additional deductions which can increase the financial cushion you have available. However, while these deductions can be very helpful in recovering income loss from your duties as a full-time caregiver, you should always consult a qualified tax advisor or elder law attorney before making any of these sorts of claims. Tax deductions are a complicated process.
Some qualifying expenses include:
- Necessary medications for which you pay
- Long-term care premiums
- Accessibility modifications to your home
- Transporting your ailing relative to and from the doctor
- Paying for in-home care workers
- Expenses related to care that are not covered by insurance
- Some or all of assisted-living facility or nursing home costs
There are other expenses that can be deducted—if you pay (or help to pay) for things like wheelchairs, eyeglasses, dentures, or the like, you may be able to claim a tax deduction for these. An elder law attorney or certified tax professional will be able to guide you through these decisions, but out-of-pocket expenditures need not result in a financial loss to you—tax deductions can be a way of offsetting the sometimes severe expenses of acting as a full time caregiver to an ailing loved one.
