Dad, receives SSI about $1400 a month and lives with me. I don't declare him as a dependent but is there any advantage for tax savings? He covers all his expenses, medical, insurance and car. I cover the house and all expenses. Its not that I need the money but if there was an advantage?
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I knew all of this when I moved here, and I did it after exhausting all other options. I saved as much as I could and currently have my house rented in the States, but these are the reasons why I was wondering if there was anything that could help from a tax or financial aid perspective, understanding that our situation is very peculiar.
Thank you so much for following up on my question!
***To tgengine...If your Dad is a Veteran he may qualify for Adult Day Care as well as getting needed supplies through the VA. Things like Pull ups. gloves, wipes may be obtained through the VA. This can be a great savings to him and or you.
You can charge hourly rate for care giving.
You can charge to take him to the Dr.
You can charge for food that you buy that he consumes.
If he is living with you you can charge him a portion of the gas, electric, cable, phone, water, garbage service, newspaper and anything else that might be a household expense this would include snow removal and lawn service. (Easiest way to do this would be to divide the bills by the number of people in the house. 5 people he would pay 1/5th of each bill) Save all receipts so if there is a question later on you can provide proof that the charges are legitimate.)
You say he covers his expenses, but he doesnt. You give him money every month. AND you house and feed him. Doesn't Dad deserve the dignity of paying his own way?
Think about visiting an eldercare lawyer and setting something up.
Unfortunately I’m aware of that but wanted to confirm, because I know that there are some situations that allow for some compensation; for example, I’ve a friend whose husband receives payment for driving her mom to and from the outside care facility where she goes daily in Virginia, so I was wondering if similar ideas could exist that I didn’t know about.
I’ve always thought that with the large population of adult children that are forced to quit their life to care for their sick or elderly parent(s) the fact that there’s no financial help for us is a significant void in the system and regulations. It feels as if we are forgetten citizens!
I understand that the system offers resources which in many cases should suffice, like Medicaid and subsidized care centers for the elderly, etc..yet that doesn’t cover all situations. We know there are many people that for a wide array of reasons have no choice but to become 24/7 caregivers. And I’m not even considering my situation as part of the void I’m referring to, because like I said my mom is not a US citizen...yet she is most definitely absolutely my dependent!
And no, here the system doesn’t work for basically anything.
Since your Mom is not a U.S. citizen, then Medicaid is totally out of the question. You may want to check with the government where your Mom lives to see what is available for her.
There's a new tax credit for non-child dependents, like elderly parents.
Taxpayers may now claim a $500 temporary credit for non-child dependents.
This can apply to a number of people adults support, such as children over age 17, elderly parents or adult children with a disability.
Thanks again.
If you declare him as a dependent, it could affect his SSI and any Medicaid benefits. Consult a tax preparer familiar with your state's rules and see which benefits you and him the most.