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Tax season is upon us again. While you may know the exact filing requirements for your personal taxes, what about how to file the taxes of an aging parent or loved one? If you provide home care for a senior loved one, are there medical and dental expenses that are tax deductible?
What Expenses Can Seniors Deduct?
Studies show that medical and dental expenses are some of the most costly for seniors, with as much of 30% of a senior’s income going toward health care premiums, prescription drugs and other expenses related to health care. Although many of these medical expenses are tax deductible, only the amount of medical/dental expenses that is more than 7.5% of the senior’s adjusted gross income can be deducted.
For example, if the adjusted gross income is $160,000 and there are receipts for medical/dental expenses totaling to $20,000, only $8,000 can be deducted. This is the amount that medical/dental expenses exceed 7.5% of the AGI. 7.5% of $160,000 is $12,000, and $20,000-$12,000 is $8,000. Certain out-of-pocket expenses are deductible for seniors if they itemize their deductions in the Schedule A (1040 form) section of their tax return.
What Can be Included in Deductions:
What Cannot be Included in Deductions:
Make sure you deduct the maximum amount from your loved one’s taxes and put the savings toward helping to ensure safety, comfort and quality of life moving forward. To learn more about home care services in your area, call 310-504-0506 and speak with a friendly Care Manager from Home Care Assistance of Redondo Beach, a premier home care agency serving Southern California’s South Bay.