Senior Care Tax Deductions

As the tables turn and children become the caregiver for their parents, and as senior care expenses begin adding up, family caregivers often ask if Uncle Sam offers a tax deduction similar to the tax deduction for child care.

The answer is yes — if you are able to claim the elderly relative as a dependent (your parent does not have to live with you, but you must be providing more than half of their financial support, which includes food and transportation). If you and your parent meet the IRS criteria, you will be able to deduct up to $3,400.00 from your taxable income. Social Security benefits are not counted in most cases.

In addition, the IRS lets you deduct medical costs as long as they exceed 7.5 percent of your adjusted gross income. This may include the medical (and dental) expenses of everyone listed on your tax return, including your spouse and dependents. You may be able to include some of the expenses paid for a parent, along with expenses for a caregiver.

Keep in mind that medical expenses include travel expenses to and from medical treatments, along with uninsured treatments such as hearing aids and dental work. If more than one child participates in the financial support of the parent, some families rotate the deduction to a different child each year.