It’s that time of the year again….tax season. We often receive questions about the deductibility or credit for home care on your federal taxes. So we wanted to provide some key tips and resources…..
Elderly Dependent Care Credit or the Aging Parent Tax Credit. It is a tax credit for expenses an individual or family acquires for the consideration of care of a dependent (or other qualified individual that can be claimed as a dependent) so that the taxpayer(s) are free to work or effectively search for a job. Please note that an individual does not have to be related to the taxpayer(s) to be claimed as a qualified person.
Know How a Relative Qualifies as a “Dependent” on Your Return
As referred to as the Elderly Dependent Care Credit or Aging Parent Tax Credit. How a relative qualifies as a “dependent” is based on two main qualifications. First qualification is their yearly income. For example in 2019, the dependent or qualified person gross income cannot exceed $4,150.00. Second qualifications was whether or not a caregiver supplied more than 50% of the relative or dependent support. If these two requirements are met then you will be able to receive the tax credit.
Tip # 2
Know When You Can Claim Credit for a Dependent’s Medical and Dental Expenses
Again this is based on your qualifications. Please note that qualifications and numbers may vary depending on the dependent. Your total medical cost must represent more than 7.5 % of the tax filer’s Adjusted Gross Income (AGI).
Tip # 3
Other Expenses You can Claim
You will be surprised at what expenses you can claim when taking care of a elderly dependent. The following list is to make sure you can squeeze every nickel and dime for your tax refund.
Other Expenses to Claim :
- Deductibles, medical fees from doctors, laboratories, dentists, assisted living, home health care and hospitals
- Transportation cost to receive medical care, including ambulance services
- Housing modifications costs, such as wheelchair ramps, porch lifts, grab bars, and handrails
- Personal Care items such as disposable briefs, and food/ nutritional supplements for a special diet as prescribed by a doctor to treat a medical condition
- Prescription Drugs Costs
- Hearing Aid Devices
Tip # 4
Know what Form to Use for the State of Texas
When your time comes to do your taxes make sure that Form 2441 is filled out ( “Child and Dependent Care Expenses Credit) and attached to all other required tax documentation.
Tip # 5
Know How to Keep Your Dependent Paperwork Safe
Each year, Virtuous Homecare, LLC provides our clients with documentation of their home care expenses. We advise our clients to also keep receipts, copies of all medical records, prescriptions, medical equipment, etc in case if the IRS asks to present them with a copy for their purposes.
If you would like to know more about our services feel free to visit our services page http://www.virtuoushomecarellc.com/.
* This article is for reference only. ALL tax questions should be referred to the IRS or tax professional.
For more IRS information click the link https://www.irs.gov/ .
For local tax professional services contact Massing & Elliott CPAs PLLC the link is provided here for contact information http://massingelliott.com/?fbclid=IwAR05KalD0XUzcYjUnTNPPIm1kHA6k9RjdCTZypbyU18VQ07deQQb0ocj9JA