My husband now lives with my child as I can not care for him. I send money to my child for all his expenses. Will there be any tax implications that we need to plan for. Or can we file like we always have?
I would have a CPA do the taxes. If they can be figured two or three different ways (legally) that will be done and you'll get the best filing. This will also keep you out of trouble and if you get audited you'll have someone on your side. It's worth the money. Warmly, Carol
Are you paying the child for the care? You should have a care agreement that states what will be provided and what you are paying for. Child should separate his expenses, even a separate account, keep all receipts just in case Medicaid should ever become involved. Document everything! See an elder law attorney for help with setting everything up correctly.
If you have a good relationship with your children and you pay your dads expenses and your children are agreeable to your claiming your dad and not them, then do it. I think more on the positive side then the negative. Would check IRS requirements though 😊
To my knowledge, you can NEVER claim a spouse as a dependent.
You really need to see a tax professional about this and make sure that you and your child are on the same page. You need to make sure that the payments for your husbands care are being made properly (i.e., there is a caregiver contract in place, or that you are paying an agency directly) so that those expenses are deductible.
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Warmly,
Carol
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You really need to see a tax professional about this and make sure that you and your child are on the same page. You need to make sure that the payments for your husbands care are being made properly (i.e., there is a caregiver contract in place, or that you are paying an agency directly) so that those expenses are deductible.
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