Tax Deductions and Credits for Caregiving
Major changes to the American tax structure as of 2018 have made it so that caregivers (or anybody, for that matter) can not file for personal exemption. However, there are other benefits that caregivers can look towards to be reimbursed for all their love and care.
Here are a few things to keep in mind when calculating your tax deductions and credits as a caregiver.
Non-child dependent credit
The individual is a relative, or a non-relative that has lived with you for a minimum of six months.
The individual makes less than $4,050 (as of 2017, may be subject to change), not including any compensation from Social Security or disability
The individual is unable to cover over 50% of their personal living expenses
The individual is not claimed as a dependent by anyone else
Deductions for professional care
This credit is not applicable for general home care such as running errands, or hiring a housekeeper. However, options such as private nurses and elderly homes do qualify for this deduction.
State tax credits
Family caregivers are encouraged to take the time and seek out what support they can receive from the state in order to help alleviate the financial burden that caregiving can pose.