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Possible Tax Deductions for Elder Care

As tax time is once again upon us, do not forget that many healthcare items may be tax deductible if they are paid through private money. Though there are important qualifications for tax deductions, many elder expenses can be deducted. Feel free to contact The Golden Journey for further information. We can send you more detailed information from The Alzheimer's Association. Don't let caregiving tax deductions slip away.

If you are caring for a loved one with Alzheimer's, you may qualify for tax deductions if you pay privately for care. The Alzheimer's Association CareFinder™ can point you to federal and state tax deductions and credits you may qualify for. According to The Alzheimer's Association, (source www.alz.org) there may be some valuable tax deductions for you or someone you care about. ALWAYS CONSULT YOUR TAX ADVISOR FOR INDIVIDUAL DEDUCTIONS BEFORE CLAIMING ANY ON YOUR TAX RETURN.

Tax Deductions and Credits
As a caregiver, you may qualify for tax deductions and credits if you are paying privately for care. Federal taxesA person with Alzheimer's may need help with self-care and chores. Taking care of a chronically ill person could qualify a caregiver for federal income tax deuctions. Deductible expenses include: personal care items, such as disposable briefs and special foods, home improvements, such as grab bars, in-home care, such as physical or occupational therapy, nursing services, assisted living or other residential care, nursing home care. A caregiver can take federal income tax deductions only if the ill person has been certified as chronically ill. This certification must have been made by a licensed health care practitioner within the last 12 months. Long-term care services must be given under a prescribed plan of care.

If you are caring for someone with Alzheimer's, keep records about your payment for services. And be sure to save certifications and plans of care. State taxes Forty-one states and the District of Columbia provide assistance with the costs of privately paid Alzheimer care. State tax credits and deductions vary by state. If you paid someone to care for your dependent so you could work, you may qualify for your state's child and dependent care credit. A qualifying dependent is a person of any age who is physically or mentally incapable of self-care. The dependent must also live with you.

The amount of credit varies state by state. Many states allow for a deduction of medical expenses for long-term care services. In order to deduct long-term care expenses, the chronically ill person must be certified by a physician and must have a plan of care. Some states give a caregiver tax credit to alleviate expenses incurred as a result of in-home care of a chronically ill person. Most states require the care recipient to live with the caregiver for at least six months of the year. Each state has different qualifying expenses and different credit amounts. Many states allow for a credit or deduction of long-term care insurance premiums paid for the taxpayer, the taxpayer's spouse and the taxpayer's dependents. For most states, an insurance policy must be qualified under federal law or authorized by the state. The amount of the credit or deduction varies state by state. For additional information on any of these tax credits or deductions contact your state Department of Revenue. This discussion is not intended as tax advice. The determination of how the tax laws affect a taxpayer is dependent on the taxpayer's particular situation. A taxpayer may be affected by exceptions to the general rules and by other laws not discussed here. Taxpayers are encouraged to seek help from a competent tax professional for advice about the proper application of the laws to their situation.