Planning early for tax season can save significant money. If you are paying over 50% of someone's care annually, you may qualify to list them as a dependent on your taxes.
For those who are paying out a significant portion of their income in medical expenses or who are now caring for an aging parent, tax planning early in the year can help reduce the amount of tax owed. Click here for some great tips from Turbo Tax on how and when to claim these deductions.
For those with a loved one in Assisted Living or Memory Care who are helping provide over half of their annual financial support, don't forget to talk to your accountant to see if they qualify as a dependent as well. It is typical that the following individuals may qualify:
- Biological Children
- Foster Children
- Adopted Children
Also discuss what expenses may qualify as you will need good records to be able to quantify these at the end of the year. These are some typical ones:
- Food and Snacks
- Doctors Visits
- Transportation to Doctors Visits
- Monthly Rent and Care in Assisted Living, Memory Care, or Nursing Home
- Medical Equipment