Elder care often comes at the expense of the children. This article helps explain the issue of claiming parents as dependents. Financial planning for elders on behalf of their children goes well beyond your tax return though – contact our attorneys to see how we can help.
It is increasingly common for adult children to take care of their elderly parents. When such support begins to become both financial and significant, many wonder whether a tax break might be available to help offset some of the expenses.
As is the answer to too many other tax questions, the answer to this one is also, “It depends.” Here are some of the key considerations to determine if you can claim your parent as a dependent. (For easy understanding, we’ll assume the parent in question is your mother.)
How Much Support Do You Give Your Mother?
To take the dependent exemption for Mom, you must provide significant support to her. Giving Mom a shoulder to lean on or other emotional support is irrelevant. We’re talking about significant financial support.
In fact, your support must be at least half of the cost of what it takes to keep her…
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