By Marlo Sollitto, AgingCare.com contributing editor
It isn’t just time, but money that most caregivers donate to help maintain the ones they love. When tax time rolls around, you may be able to claim your parent as a dependent on your income taxes. This would allow you to get an exemption for him or her.
In order to claim your elderly loved one as a dependent on your taxes, you must meet certain criteria.
Any dependent must meet these tests, according to tax experts at bankrate.com:
You (the caregiver) cannot be claimed as a dependent by another taxpayer.
They must be a resident of the U.S., Canada or Mexico.
They cannot file a joint tax return with a spouse.
The person who you want to claim as a dependent must be a relative. Relatives who qualify who do not have to live with you include: mother, father, grandparent, stepmother, stepfather, mother-in-law, father-in-law.
Your loved one’s gross income for the year must be less than $3,650. Social Security normally is excludable, but if they have other income, which in many cases means interest and dividends, some is taxable.
Tax Tips for Caregivers: Claiming a Parent as a Dependent originally appeared on AgingCare.com