As a Mom with 2 kids, a husband and a Mother in law all living in the same home, I am keenly away of the issues that concern the generations above and below us. As an elder law attorney I have the advantage of being able to spend time finding to solutions to those issues. You may not have that flexibility or freedom and Taking care of your elderly loved ones is a difficult task. It can be emotionally difficult, as well as financially crippling.
In honor of tax season, SmartMoney offers some related articles about often-overlooked deductions that might help relieve some of your financial stress if you are providing such care. The first article is titled Tax Breaks for Helping Relatives and the sequel article is More Tax Breaks for Supporting Relatives.
For example, the most obvious way to realize some tax relief is to claim your elderly loved one as a “dependent.” In addition, do you pay for medical expenses? If yes, then there is a deduction for that.
As you might expect, the level of support available under the tax code depends on multiple factors, to include the level of support you provide, the support your elderly loved one needs, and even various programs available in your area.
It may be too late for you to pursue tax relief for tax year 2011. However, now is the perfect time to explore your options for tax year 2012 and plan accordingly.
Regardless, I recommend taking time to read both articles. If this issue does not directly affect you now, it may in the future.
Reference: SmartMoney (March 7, 2012) “Tax Breaks for Helping Relatives”
The Ard Law Firm wants to help Houston, Tx families of the Elderly find solutions and peace of mind. Give us a call for a free consults and get on the path to a peaceful solutions.