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Article: Tax Tips for Seniors and Caregivers

Last post 01-23-2009 2:35 AM by mcrews. 4 replies.
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  • 02-13-2008 6:31 PM

    Star [*] Article: Tax Tips for Seniors and Caregivers

    Tax Tips for Seniors and Caregivers

    Whether you are a senior citizen or a caregiver for one, tax season means accounting for the past year's medical expenses. Both individuals and people who care for qualifying relatives can claim tax deductions and credits for out-of-pocket medical expenses. These costs can include a range of expenditures, including dental treatments, the cost of transportation needed to get to a medical appointment, health insurance premiums, and qualified long-term care services. The IRS states, "Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of diseases, and the costs for treatments affecting any part or function of the body." For a full list of allowable medical expenses, see Publication 502 (2007) at the IRS web site (http://www.irs.gov/). Read on about the rules that govern deductions and for more tax tips for seniors and their caregivers.

     

    This article continues at Tax Tips for Seniors and Caregivers.

  • 06-16-2008 9:22 PM In reply to

    Re: Article: Tax Tips for Seniors and Caregivers - New York

    Senate passes tax credit bill for families caring for elderly.

    NYS News

    Text of June 10 Senate press release.

    SENATE PASSES BILL TO HELP FAMILIES CARING FOR ELDERLY LOVED ONES Bill Would Provide A Tax Exemption For Family Members Of The Elderly

    The New York State Senate today passed legislation (S.2060), sponsored by Senator John A. DeFrancisco (R-I-C-WF, Syracuse) that would provide individuals who are caring for an elderly family member with an additional tax exemption.

    "Often family members are struck with the difficult decision of deciding how to care for their elderly family members who are no longer able to live independently," said Senator DeFrancisco. "Many families find it challenging to provide care for an elderly family member, while working a full time job and managing their own lives. My bill would help to eliminate some of the pressure."

    This bill would provide a personal income tax exemption to an individual taxpayer who cares for a parent or immediate family member, seventy years of age or older, residing in the household of the taxpayer. Individuals would be allowed an additional tax exemption of $1,000 for each elderly dependent, whose gross income does not exceed $5,000 or in the case of a husband and wife with joint income, does not exceed $7,500. This would help to encourage family members of the elderly to care for their aging relatives at home to avoid costly institutionalization.

    "Caring for an elderly family member has become increasingly expensive as prescription drug prices and gas prices have been on the rise," Senator DeFrancisco said. "This bill would create an incentive for families who are worried about being overwhelmed by these costs and all of the other costs of caring for an elderly parent or relative."

    "Caring for elderly loved ones places additional demands on the time and finances of a family, but they do it out of love," Senate Majority Leader Joseph L. Bruno said. "This legislation would help families strike a better balance in meeting the additional responsibilities they face in this situation."

    The bill was sent to the Assembly.

  • 07-01-2008 8:57 AM In reply to

    • mcrews
    • Top 10 Contributor
    • Joined on 07-01-2008
    • California
    • Posts 138

    Re: Article: Tax Tips for Seniors and Caregivers

    Dependency deduction

    To qualify for a dependency deduction, you must pay for more than 50% of your qualifying relative’s support costs. The relative only qualifies as a dependent if he or she meets the gross income and the joint return test. He or she must not have a gross income in excess of $3,400 in 2006 and cannot file a joint return for 2007. If your relative doesn’t qualify as a dependent because of these tests, you cannot claim a dependency deduction, but you can still claim his or her medical expenses.

    This portion of the rule always seems to disqualify every senior out there. 90% of all seniors have more that $3400 in Social security.

    However, the IRS DOES NOT include SS in this calculation.

     

    Mark John Crews

    Creator, Strategic C.A.R.E.Planning(c)

  • 01-20-2009 1:41 PM In reply to

    Re: Article: Tax Tips for Seniors and Caregivers

     I have a friend who is 76 years and looking into moving into an independent living facility in North Carolina. She owns outright a small condo that she intends to sell. It should sell around $70,000. What are the tax laws regarding capital gains? Will she have to pay taxes on her profit (which is all of the amount, minus real estate commission?)

     Thank you.

  • 01-23-2009 2:35 AM In reply to

    • mcrews
    • Top 10 Contributor
    • Joined on 07-01-2008
    • California
    • Posts 138

    Re: Article: Tax Tips for Seniors and Caregivers

     

    No. she can exclude up to $250,000 INprofit.

    also remember, independent living facility can be tax deductible if it is for care. if doc says dont cook, move to ind lvg, thats a medical expense. as per the IRS 1997 definition of LTC expenses.

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