Tax season is upon us, and you may be looking at not only keeping your own financial information organized, but your senior loved one’s as well. However, there are a few extra things to consider regarding an elderly person’s taxes. The staff at Home Care Assistance, a trusted provider of senior care in Scottsdale, has some information on how to help your loved one prepare his or her taxes.
Determine If Filing Is Even Necessary
There are some unique tax laws that apply to people over the age of 65. For single individuals, there is a ceiling for gross income set at $10,750. For a married couple, the gross income ceiling is $20,900. However, even if your loved one falls under this ceiling, he or she might still have to file taxes depending on the source of the income. This is why it is always best to consult with a tax specialist.
Start Collecting Documents Early
Scrambling for documents at the last minute is not only stressful, but it can also increase the risk of making mistakes. Both you and your loved one should have a filing system for all expenses and income. By making copies and creating two separate folders, you can ensure no information is lost and your loved one will not miss out on any deductibles.
Keep Careful Track of Medical Expenses
Your loved one’s medical expenses will most likely be a confusing component of filing taxes. Medical expenses or other expenses involving his or her wellbeing may be tax deductible. For most seniors, this includes premiums for their health, dental, and vision insurance. Even expenses such as gas to get to the hospital might be a deductible. Because seniors spend more on their health care than most other demographics, this could result in big savings for your loved one at the end of the fiscal year.
Look for Tax Credits
Dependent credits are another great way for seniors or their family caregivers to save on taxes. Depending on your loved one’s living situation and the source of income, he or she might receive credits for hiring a live-in or hourly caregiver in Scottsdale. Alternatively, you might be able to claim your loved one as a dependent if a portion of your income goes toward his or her living expenses.
Help with financial management is sometimes an early sign a senior needs more help at home. Help plan for your loved one’s future by reaching out to Home Care Assistance today. Our part-time and 24-hour caregivers can help with a wide variety of daily tasks, including grocery shopping, transportation, and medication reminders. We also offer comprehensive Parkinson’s, post-stroke, and dementia care Scottsdale families trust. For more information and to schedule a complimentary consultation, call one of our knowledgeable Care Managers at 480.448.6215.