TRUTH 8Taking tax-smart care of a parent
Millions of Americans care for an elderly relative, usually a parent. As the baby boomers age, this number will keep growing.
If you’re one of these caregivers, or expect to soon join their ranks, make sure you get some help from the tax code.
If your elderly parent qualifies as your dependent, you’ll be able to claim another exemption on your return. This will help lower your taxable income amount. You also might be able to deduct some of your parent’s medical expenses or even claim the dependent care credit.
First, however, you must make sure that the IRS will accept your mom or dad as a qualifying relative.
Dependent relative requirements—If you have children of your own, you already know that the ...