Thursday, 17 of May of 2012

Tax breaks for family caregivers

Source: SeriousIllness.org

You may be entitled to claim your relative as a dependent. This requires that:

- The individual’s income was less than $3,650 in 2010. “Income” includes Social Security and pension benefits. Also, proceeds from investments or withdrawals from retirement savings plans.

- You paid more than 50% of your relative’s support. He or she does not have to live with you. Support expenses include food, clothing, housing, and medical care. Also, transportation, recreation, and other essentials. If he or she lived with you, include fair rental value for your family member’s share of the lodging.

Many relatives qualify. Your parents and siblings. Other family relatives, step relatives, and in-laws. Or anyone who lived with you all year.

If others paid some support expenses, a deduction is still possible. But only one person can claim it. And everyone who shared expenses must sign a multiple support agreement.

You may be able to deduct medical expenses.

  • This includes expenses paid for yourself, your spouse, or a dependent relative. Or for a relative who would have qualified as a dependent but had too much income or filed a joint return.
  • The expenses must add to more than 7.5% of your adjusted gross income (AGI). For example, if your AGI is $40,000, the first $3,000 of expenses doesn’t count.

READ THE ENTIRE ARTICLE

For more information about Hospice & Palliative CareCenter, contact Ann Gauthreaux, public relations director, at 336-768-3972, or see Hospice’s website at http://www.hospicecarecenter.org!

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