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Tax Information Family Caregivers Need to Know

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Family members who provide Oshkosh home care for a senior loved one are responsible for many factors that ensure the senior receives the best care possible. One aspect family caregivers may not consider involves tax preparation. Caregivers must develop an organized system. Getting ready for tax time requires managing documents and receipts throughout the year. Family caregivers must also take the time to stay informed about the tax implications concerning looking after a senior. In this way, individuals are aware of the tax breaks that might decrease an annual tax bill.

Dependent Claims

If the caregiver and the senior meet certain IRS requirements, the senior might be claimed as a dependent. These stipulations include:

  • The senior must be a resident of Canada, Mexico, or the United States.
  • The senior cannot file a joint return with his or her spouse.
  • The senior must be a relative. However, he or she does not have to live with the caregiver.
  • The senior’s income for the year cannot be more than $4,050. Social Security benefits are not included in this sum.
  • The caregiver must provide more than half of the senior’s expenses.

Deductible Expenses

The IRS allows family members many different deductions that pertain to providing home care for an older loved one. The long list of deductions include:

  • Food
  • Clothing
  • Housing
  • Transportation
  • Dental or medical care
  • Bathroom and other property alterations required for medical reasons

Deductions also include out-of-pocket expenses for:

  • Acupuncture treatments
  • Adapters for telephones or TVs for the hearing impaired
  • Ambulance service
  • Bandages or other medical supply items
  • Drug and medical care copays
  • Medically required weight-loss programs
  • Prescription eyewear
  • Prescription medications
  • Smoking cessation programs
  • Wigs when disease processes or medical treatments cause hair loss

Family caregivers in Oshkosh must keep proof of expenses in the event they become subject to a tax audit. Records are typically kept for a minimum of five years.

Learn more about financial concerns for caregivers by reaching out to Home Care Assistance of Oshkosh, a leading provider of live-in and hourly caregivers. Oshkosh families trust in Home Care Assistance to provide high-quality senior care on an as-needed basis. Call (920) 710-2273 today to speak with one of our qualified Care Managers and schedule a no-obligation consultation.

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