Can You Claim A Parent As A Dependent?

One of the nuances of the United States tax code is the possibility of claiming a parent as a dependent on your tax return. As the population continues to age and life spans increase many adults find themselves financially caring for their children and their parents.

 

Monies an adult child contributes to the care of a parent can be used as a tax deduction in a variety of ways on your tax return. The first consideration is the amount of money an adult child contributes; at least 50 percent of the parents' care must be contributed to begin assessing where and how the care of a parent would benefit your tax return

Financial Contributions To Assess

• Cost of the room provided
• Cost of a care facility
• Food, utilities
• Prescription costs
• Durable Medical Equipment Costs
• Medicare Advantage premiums, long term care insurance, deductibles, co-insurance payments

The Dependent Care Credit, Multiple Support Declaration, dependent qualifications and medical expense itemization are important areas to consider when filing a tax return if you are financing the care of a parent.

 Additional information at: http://burdensasblessings.com/2014/03/04/does-your-parent-qualify-as-a-tax-deduction/

 
Image credit http://www.flickr.com/photos/lendingmemo/11746158465/sizes/l/

Read more ...