Being a family caregiver can provide surprising tax benefits. Understanding these deductions and credits can help you keep more of your hard-earned money while providing care for your loved ones.
See If You Qualify to Get Paid as a Family Caregiver
Eligibility varies by state. Check your options in minutes.
Check EligibilityClaiming Your Parent as a Dependent
You may be able to claim your parent or other relative as a dependent if you provide more than half of their financial support. This can provide significant tax savings.
Requirements
- You provide more than 50% of their support
- They earn less than the annual limit (check current IRS guidelines)
- They are a U.S. citizen, resident alien, or resident of Canada/Mexico
- They don't file a joint return (unless just to claim a refund)
Medical Expense Deductions
If you pay for your loved one's medical expenses, these may be deductible if they exceed 7.5% of your adjusted gross income. Deductible expenses include:
- Doctor and hospital fees
- Prescription medications
- Medical equipment and supplies
- In-home care services
- Transportation to medical appointments
- Long-term care premiums (subject to limits)
Child and Dependent Care Credit
If you pay for care so you can work, you may qualify for the Child and Dependent Care Credit. Despite the name, it applies to adult dependents who can't care for themselves.
Tax Credit vs. Deduction
A tax credit directly reduces your tax bill, making it more valuable than a deduction. The Child and Dependent Care Credit can be worth up to 35% of qualifying expenses.
Head of Household Status
If you're unmarried and pay more than half the costs of keeping up a home for yourself and a qualifying dependent, you may be able to file as Head of Household. This provides:
- Higher standard deduction than single filers
- More favorable tax brackets
- Potential for greater tax savings
Record Keeping is Essential
To claim these benefits, you'll need good records. Keep track of:
Medical Records
- Medical bills and receipts
- Insurance statements
- Prescription receipts
- Mileage logs for medical trips
Financial Records
- Support expenses paid
- Care service receipts
- Bank statements
- Your dependent's income records
Consult a Tax Professional
Tax laws change frequently and individual situations vary. Consider consulting a tax professional who understands caregiver tax benefits to maximize your savings.
See If You Qualify to Get Paid as a Family Caregiver
Eligibility varies by state. Check your options in minutes.
Check Eligibility