In Home Caregiver Tax Deduction. Oddly given the name this tax credit does not require that your loved one qualify as your dependent under the irs definition of the term. Families must also deal with a caregiver s fica tax obligation the social security tax of 6 2 on wages up to 118 500 in 2016 and the medicare tax which is imposed at a rate of 1 45 on all wages with no limit.
I d like my dad to deduct his caregiving expense on his taxes. You can claim your parent as a dependent. You can claim a portion of up to 3 000 in caregiving costs for one person and up to 6 000 for two or more.
If your age is over 65 then that limit is set at 7 5 percent of your adjusted gross income says rogé.
But the irs has rules for when you can claim it. Aarp financial and legal. As always do consult a qualified personal income tax preparer to help with the details but here is a quick guide to some caregiver tax deductions. Oddly given the name this tax credit does not require that your loved one qualify as your dependent under the irs definition of the term.