As part of my research I found that the Government has created a very useful site which informs about the various benefits available to individuals and families facing various disasters and challenges.
The website is Benefits.gov - Your Path to Government Benefits
Hope it helps people reading this forum and individuals such as me who are facing life changing situations.
My spouse was just diagnosed with a long term illness which will prevent me from working a full time job. I will have to take up a large portion of the caregiver responsibilities. Are there any tax benefits/credits for someone in my situation? Where can I go for additional tax and finance information for this question. Any help is appreciated. Thank you.
Answer :
To qualify for caregiver tax deductions and credits, the person you are caring for must be a spouse, dependent, or qualifying relative or etc. The caregiver and medical expense tax rules have several important qualifications:the 7.5%(or 10% rule UNLESS you are 65 or older) rule says you can only deduct medical expenses-for both yourself and your loved ones-if these costs exceed 7.5% of your AGI. Senior citizens and caregivers should be aware that premiums paid for qualified long-term care insurance contracts are also deductible medical expenses. According to the IRS, the contract must be guaranteed renewable; not provide a cash surrender value; not pay the costs that are covered by Medicare; provide that refunds, other than refunds upon death, surrender, or cancellation of the contract, and dividends are used only to reduce future premiums or increase medical benefits. For 2011, long-term care premiums are deductible up to the following dollar amounts: for individuals age 61 to 70 the limit is $3,500, for individuals 71 and older the limit is $4,370.Many state governments also offer tax credits and deductions for caregivers on state income tax forms, so it pays to know your individual state's rules.
You may need to contact your local Social Security Administration office to find out if there are Medicaid provisions for home care that will compensate spousal care. Review your own insurance coverage for similar provisions. Both state-based and private insurance compensation options will outline the qualifications you must have to be considered as a home-based caregiver.
Visit Asktaxguru for Online tax help
No comments:
Post a Comment