The money I receive from caring for my parents in my home is counted as income to me. I should be able to deduct some expenses whereas not all the money I receive is "profit" and should not be subject to income tax, much like a business is allowed to take deductions. I have heard that medicaid has a "Roof, Utility and Food" (RUF) allowance that is used by assisted living facilities. Is this something I can also us as a standard deduction? Where can I find how much that amount is?
It was also the attorney who said medicaid has an allowance for Roof, Utilities and Food used by assisted living centers referred to as RUF. This amount is the cost medicaid recognizes as the cost for these services in caring for an individual. I believe the cost is somewhere around $648/month. I am hoping that this may be a simple way to deduct our expenses from the money we receive in calculating how much we need to pay taxes on. I have heard others will claim a percentage of their house payments and utilities and food. I was hoping not to keep track of individual receipts. We are also keeping a log of milage when we are transporting them to appointments and errands. We will use the milage as a deduction.
I wonder if you can check with an accountant or HRBlock or an elder law attorney. Or calling Medicaid directly.
I'm so sorry, I hope others will have more experience in this situation.