Tax Deduction for Caregivers

Tax Deduction for Caregivers

Tax season makes us ask all the money questions — where can we find places where we can save money? Who is able to deduct? What parts of our life are eligible to deduct? In the United States, deducting medical expenses incurred while caring for a friend or relative is a possible avenue one can take in order to get a tax break.


-Caregiver Deduction $3,650 Criteria:

  • MUST provide at least half of a recipients financial report
  • MUST live with the non-family member receiving said care and financial support for the whole year. If a family member, they can live on their own
  • Those who receive care MUST be a citizen of the US or a legal resident of the US, Canada or Mexico
  • Caregivers MUST provide proof that the person who receives care does not exceed a gross personal income of more than $3,650 (excluding social security benefits)
  • Those who receive care cannot file for a joint tax return


-Caregiver Credit $1,050 Criteria:

  • If caregivers do not meet all of the requirements listed above and care for a person who is mentally or physically unable to care for himself or herself, a caregiver might be able to receive a dependent care credit up to $1,050.


-Caregiver’s Deduction of Medical Expenses

  • If a caregiver is neither eligible for the above dedications, they can itemize the money spent on qualifying medical expenses that exceed 5% of the Caregiver’s Adjusted Gross Income (AGI).
  • For example, if the Caregiver’s AGI is $60,000, then the Caregiver can deduct whatever is beyond $4,500 (7.5% of $60,000) for qualifying expenses.
  • Qualifying expenses include, but are not limited to:
    • Insurance premiums
    • Out of pocket costs for hospital and doctor visits
    • Equipment
    • Some forms of nursing home expenses.
  • In this scenario, the caregivers still need to prove that they provide at least half of the care recipient’s financial support.


Share your legal questions with Law Advocate Group, LLP

Skip to content