Money Fix: Tax advantages for elder care
Caring for elderly relatives can have tax advantages if they become a householder's dependents. Credit: iStock
It's the right thing to do to care for mom and dad as they age. But no good deed goes unrewarded: You may qualify for federal tax breaks.
"If your parent qualifies as your dependent under the IRS guidelines, an additional exemption may be available to you," says Roberto Viceconte, a partner with Lake Success accounting firm WeiserMazars. "Medical and chronic-care expenses may also be deductible."
If you paid someone to care for your loved one while you worked or looked for work, you may be eligible for the Child and Dependent Care Credit of up to 35 percent of the expenses paid for that care, up to the maximum of $3,000, explains Rocco Carriero, a wealth adviser with Ameriprise Financial in Southampton.
For more, check out IRS publication 502: "Medical and Dental Expenses" at irs.gov and talk to your accountant.
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