Preparing for Elder Care Expenses
As life expectancy grows, so does the expense for elders.
It is estimated that the average cost for caring for an elder family member who has long-term care needs is $140,000, which is a cost often picked up by family members. That bill can be reduced through tax breaks, according to Market Watch in “Tax breaks you should know about if you’re caring for elderly parents.”
Family caregivers do not have many options, when it comes to assistance with paying these bills. However, there are some tax deductions that might be useful to help with some of the costs.
First, it is possible to claim an elderly parent as a dependent for tax purposes. Second, if out of pocket expenses are made to hire someone to care for an elderly person so a taxpayer can go to work, then some of that money might also be deductible. Third, if employers offer dependent care savings accounts, the money can also be used to help with elder care expenses. Finally, some medical expenses paid on behalf of an elder dependent, might also be deductible.
Reference: Market Watch (Feb. 13, 2018) “ Tax breaks you should know about if you’re caring for elderly parents.”