Being a family caregiver is a great responsibility For some, it’s an honor to take care of the matriarch or patriarch of the family, but no matter what your motivation for doing so, you may be wondering what kind of financial advantages there could be for you, or the person who is actually providing home care for the elderly loved one.
One of the financial considerations that many family members have when it comes to caring for a loved one –whether they are caring for them in their own home, or they have moved the elderly loved one in with them- is whether or not they get any tax benefits from this level of care.
There are certainly some tax advantages that family members will find when they are caring for a loved one. Some will depend on whether the care is being done in their own home, or in the elderly loved one’s home. Other advantages will relate to the amount of time that you spend with the elderly patient, as well as their physical and potentially even mental abilities.
In order to gain the proper tax advice, though, it’s important to speak to a qualified tax professional. At the moment, though, you may be trying to save some money by avoiding paying for professional advice. While the tax code is considered a monstrous, confusing pile of drivel that only professionals can understand, let’s talk about some potential tax savings that you could look into for this year, or last.
Keep in mind that we mention ‘look into.’ None of the information provided here is meant to be professional, and you are always liable for your own taxes, so if you find something useful, make sure you talk to a tax professional.
If you provide care for your loved one in his or her home, you could quality for certain deductions. This could include vehicle expenses and transportation. If you have to bring your loved one to a doctor’s appointment, those miles may qualify for a tax deduction. Make sure you understand what the IRS considers a professional caregiver before filing that type of deduction.
If you are caring for someone in your home, you may be able to deduct a portion of an addition or the home itself that the elderly individual is living in. This can be a complicated matter and best left to the professionals.
If you receive any type of payment as a caregiver, you may qualify for other tax deductions and savings as well. There are opportunities to save some money on your taxes when you’re a caregiver, so it’s best to speak to a professional tax accountant who can help you find all of the places where you can save on your taxes this year.
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