If you are a family caregiver, no doubt you are more than aware of the many sacrifices your family makes – especially financially. However, you may not be as familiar with are the potential tax benefits you may be eligible for. Considering the high cost of caregiving, families would do well to determine their eligibility and take advantage of any possible tax credits. Keep in mind that when you use a homecare system, such as ClearCare, you will save even more money on out-of-pocket expenses.
1. Keep careful records. You will only be able to deduct medical expenses if they exceed a certain percentage of your gross income, so you must provide the government with accurate receipts in order to establish that you meet the necessary requirements. If you hire a homecare agency to assist with the responsibilities of caregiving, look for one that uses ClearCare’s homecare software. This will save you considerable time, allowing you to stay more organized and keep better records. A reliable homecare system also gives you peace of mind, which can alleviate stress as you manage financial matters.
2. Determine if you qualify to claim your parent as a dependent. This will reduce your taxable income by $3,700. The major mitigating factor in determining eligibility is the annual gross income of your parent, which must be less than $3,700 a year. This figure does not include income from non-social security or disability payments, but other sources of income can be counted.
3. Deduct all medical costs fees for hired help. If you are able to claim your parent as a dependent, you can claim deductions for his medical expenses – even the costs of in-home help. A caregiver who uses a homecare software, like ClearCare, will keep detailed records, and thanks to the reliability of the entire homecare system, every expense will be accurately billed. You can also deduct the cost of doctor’s visits and medical supplies. If travel is required, you may also be able to deduct the cost of transportation. Your parent’s caregiver will use her homecare software to track such expenses. The easy-to-use homecare software from ClearCare makes it easy to keep a watchful eye on your parent’s daily care and maintain control over his financial affairs.
For more financial tips, consult with a tax professional. You may also want to check with your state regarding special credits for family caregivers. Remember, when you work with a qualified agency that offers ClearCare’s homecare system, you will have the spare time to devote to such money-saving endeavors. A dependable homecare system provides your entire family with real-time visibility to your loved one’s care, relieving anxiety and worry. Taking advantage of a homecare software and all potential tax benefits will make it much easier to provide the care your loved one needs.