Being a family caregiver and doing taxes can both be stressful tasks, let alone having to do them at the same time. As a caregiver, you might have been procrastinating because you just aren’t sure what claims and deductions you can make. If you already filed your taxes, this guide to caregiver tax deductions can still be helpful for future tax seasons. Even after searching for tax tips, many caregivers don’t realize how many breaks they can really get on their taxes, so we’re here to help.
Caregiver Tax Deductions
There are many different deductions and claims that caregivers can make, so we’ll walk you through the basics of a few common ones. Always check with an accountant if you are unsure of which you qualify for.
Dependent Claims
You might be eligible to claim your parent as a dependent if you have supported at least 50% of their total needs in the year. There are certain requirements that must be met in addition to this percentage, so be sure to look into that before filing. For example, your loved one cannot have enough income to care for him/herself and they cannot file jointly with another person.
Medical Expenses
Many different medical costs can be included in caregiver tax deductions. If you are providing any assistance for medical reasons, you could be subject to a deductible. Here are a few common ones:
- Equipment – glasses, canes, wheelchairs, etc.
- Dental expenses – dentures, dental care
- Services/Procedures – surgeries, treatments, prevention, etc.
- Other possible expenses – artificial limbs, wigs, hearing aids, bandages, etc.
- Prescriptions
- Professional homecare – doctor approval is required.
Mileage & Travel
If you’re spending a significant amount of time driving your loved one around town and even out of town for doctor appointments, you probably qualify for this caregiver tax deduction. In order to deduct these expenses, you must itemize your deductions and be sure that your senior qualifies as your dependent. The best way to keep track of how much you’re traveling is to start a log and keep it with you. It can be a pain to keep up with, but there are great rewards. In the 2016 tax year, you can take:
- 19 cents per mile driven for medical purposes
- $50 per night per person if an overnight stay is necessary.
Home Improvements
Adding features for medical and safety reasons can be very expensive for a caregiver. Ramps, handrails, bathroom renovations, and others fall into this category. As long as the improvements don’t add value to the home, you can take a deduction on these costs. Other examples that normally don’t add value are doorway and hallway widening, and kitchen cabinet lowering.
Charitable Contributions
Aside from the value estimate of items donated to charity, there are other deductibles for charitable contributions. You can include costs related to volunteering, such as expenses for buying ingredients to cook for the homeless or driving your personal vehicle while volunteering. Some charities even accept durable medical equipment that’s in good shape.
Long Term Care
Caregiver tax deductions also include the costs for long-term care services. If your senior is chronically ill, care types such as rehabilitation, preventative, therapeutic, and personal care can qualify. These services must be part of a plan that is arranged by a health care professional.
