What You Need to Know about Caregiving Expenses and Tax Deductions
Tax season is upon us once again, and if you’re like most Americans, you’re wondering how you can minimize your family’s financial burden. Thankfully, if you’ve arranged for in home senior care from Always Best Care to care for an aging loved one, you may be eligible for tax breaks that can help you cut costs. All too often, family members fail to realize that such breaks are available to them.
It should be noted that the tax code is complex, so it’s critical to consult with your accountant or tax attorney before taking advantage of any of the possible deductions that may be available to you. However, your efforts will help you ensure that pay no more than you absolutely have to this tax season.
Let’s take a look at some of the facts regarding in home senior care and tax deductions.
Deductible Medical Expenses
For most people, medical expenses are deductible once they exceed 10% of adjusted gross income. And in many cases, non medical in home caregiving expenses can, in fact, be deducted as such. Certain factors apply, though, so it’s vitally important that you consult with your tax professional before claiming deductions for non medical in home care for a senior loved one.
Generally speaking, taxpayers are eligible for such deductions if they are paying for their own care or for the care of an adult dependent. Therefore, it’s necessary to ensure that the proper procedures are followed in order to claim a senior loved one as a dependent.
Again, the U.S. tax code is incredibly complex and it’s necessary to ensure that certain criteria are met before pursuing deductions associated with senior care. But we urge you to take the time to speak with your tax professional; it could end up saving you a considerable amount of money this tax season!
Don’t Overpay if You Don’t Need To!
According to a recent study by the GAO, more than 2.2 million Americans overpaid on their taxes as a result of using the standard deduction. That’s a huge number that could easily be avoided by simply exploring available options. And as someone who is paying for the care of a senior loved one, you may be able to take advantage of some significant breaks. So it’s absolutely in your best interest to seek out ways to save, even if it means foregoing the ease and simplicity of taking the standard deduction.
The costs associated with the care of a senior loved one are well worth the peace of mind that such services provide, but you should never make your financial burden heavier than it needs to be. Unfortunately, too many families are simply unaware that meaningful tax deductions may be available to them.
At Always Best Care, we want what’s best for seniors and their families, and we understand the importance of saving money wherever possible. We’ve seen families save by taking advantage of available deductions, and we want you to be sure you’re doing all you can to ensure that vital in home senior care services remain affordable. It’s worth it for you to explore your options this tax season, so please call your CPA or tax professional today to learn more!