Tax Planning; What Should You Know?

By Eunice K. Neubauer, CSA

2016 Federal IRS Tax Exemptions Deductions Filing Information Twin Cities MNAs a caregiver, you may be able to claim your elderly parent as a dependent.  And, you may be able to claim that person even if they don’t live with you and live in a facility.   To be a dependent they need to be a relative, earn less than $4,000 before social security benefits and you must be providing at least half of their financial support.

A worksheet to help you determine the amount of support can be found in this tax bulletin.

http://agewiseassisted.com/wp-content/uploads/2016/12/2016-federal-irs-tax-exemptions-deductions-filing-information-twin-cities-mn.pdf

If you are also paying for a lot of medical expenses of someone you are caring for and medical expenses also for yourself, you may be able to deduct those expenses as well when you itemize.   Check with an accountant to verify what is appropriate for your situation.  If you don’t have an accountant, ask around for a recommendation.  Choice Connections would be happy to refer you to an accountant as well.

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