In Home Assistance for Elderly Near Leucadia: Tax Credit Available

Tax Credit Available For In Home Assistance For Elderly Near LeucadiaTax Credit For The Cost Of In-Home Care Near Leucadia

Whether you tackle the task yourself or entrust your pile of receipts, statements, forms, and reports to a professional, the process of filing your income tax return must go on. Among the many benefits that the IRS offers taxpayers are a few deductions and credits associated with the costs of in home assistance for elderly near Leucadia or other California cities. Knowing what these benefits are and what expenses are eligible will help you keep efficient records and plan your budget.

How To Qualify For The Credit

Here is a brief overview of the benefits for the 2011 tax year:

 Most of the time, the “Child and Dependent Care Credit” is used to deduct the cost of  money paid to day care services or in-home babysitters for children. However, it can also be claimed for adult day care outside the home or in home assistance for elderly near Leucadia or elsewhere.

The purpose of the credit is to allow the taxpayer to work, so if a senior is already residing in a nursing/retirement home or other long term facility, the credit does not apply. However, if paying for services allows you to attend your job instead of caring for an aging parent, you can claim your expenses up to $3,000. The percentage of that amount that will be reduced from your tax payment depends on your income level and ranges from 20 to 35 percent.

What Is Required To Be Eligible For The Credit

There is a long list of medical expenses that are deductible from your income tax, and some elements of in home assistance for elderly near Leucadia are included on it. The requirements are less strict than those of the dependent care credit, but there are still some important qualifications:

  • Long term care must be prescribed by a doctor in order to qualify for deduction.
  • The patient must be “chronically ill,” which is defined as the inability to perform at least two of the following daily living tasks: eating, bathing, transferring, dressing, toileting, and continence. However, even if the patient can accomplish all of the daily living tasks, the deduction is possible if he faces danger when alone because of mental impairment.

Documentation Is Important, As Always With Tax Matters

If you intend to deduct your costs of in home assistance for elderly parents, it is critical to obtain and keep safe records from doctors that document the need for care. Otherwise, an audit could lead to a tedious battle over whether your expenses were medically necessary.

A tax professional can answer specific questions about your situation, but these basics should give you an idea whether your financial burdens are eligible for tax relief.

Tim Colling
Tim Colling

Tim Colling is the founder and President of A Servant's Heart In-Home Care, which provided in-home caregiving services in San Diego County, and also of A Servant's Heart Geriatric Care Management, which provided
professional geriatric care management services and long term care placement services in San Diego County. Tim has more than 30 years of experience in management in a variety of industries. He held a Certified Care Manager credential from the National Academy of Certified Care Managers. Tim is also a Certified Public Accountant (retired), and received his Bachelor’s Degree in Accounting from California State University at San Diego. In addition to writing blog posts here for the Servant’s Heart blog, Tim also is a regular contributor to and to as well as blogs of other eldercare services provider companies. Finally, Tim is also the president of A Servant's Heart Web Design and Marketing, which provides home care marketing as well as website design and online marketing for those who serve the elderly and their families.

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