Family caregivers who are looking after and paying for the cost of caring for a senior loved one may qualify for some tax write-offs. The staff at Lancaster Home Care Assistance looks at 4 ways family caregivers can save money on taxes.
1. Medical and Dental Expenses
In most cases, you can deduct up to 100 percent of the expenses related to diagnosing, curing, preventing, or treating your loved one’s health conditions that are not covered by insurance. This includes medical and dental care as well as expenses for supplies and medications. However, you need to make sure you keep all receipts associated with the expenses.
2. Long-Term Care Expenses
You may qualify for a deduction if you pay at least half the expenses of your loved one’s long-term care, including the cost of housing, food, and clothing. This deduction may also apply to expenses related to living in an assisted living community, attending an adult day care program, or receiving Lancaster elder care. A tax professional can help determine which expenses are deductible. If you share the expenses with other family members, be sure to keep receipts and accurate records of the portions you pay for.
3. Transportation Expenses
If you are like most family caregivers in Lancaster, PA, you probably spend a great deal of time driving your loved one to various medical appointments. If you keep a running tally of the mileage you accrue for your loved one’s medical visits, you can claim a deduction for the mileage on your taxes. You may also be able to claim deductions for related expenses such as lodging, meals, and tolls.
4. Durable Medical Equipment and Home Modifications
Adding wheelchair ramps, widening doors, and making other home modifications help your loved one remain independent. If these changes are not adding value to the home, you may be able to deduct the cost on your taxes. Wheelchairs, walkers, and other adaptive durable medical equipment may also be deductible. These expenses can be small but can add up quickly, so be sure to keep track of them throughout the year.
If you are a family caregiver and want more tips on tax write-offs and other financial matters that can affect you and your loved one, reach out to Home Care Assistance, a leading provider of respite and hourly care Lancaster, PA, families can count on. Our dedicated caregivers are trained to help your loved one manage a wide variety of daily tasks, and they can also provide transportation to medical appointments. Contact a reliable Care Manager at (717) 540-4663 to learn more about our senior care services and schedule a free consultation.