Taking Care of Older Parents
Taking care of older parents can be challenging but also offers opportunities for support, both financially and emotionally. Here are some things you might be able to get or access when taking care of your aging parents:
1. Tax Deductions and Credits
Dependent Care Credit: If your parent is considered a dependent and you pay for their care, you may qualify for the Child and Dependent Care Credit, which can reduce your tax burden.
Medical Expense Deduction: If you pay for your parent’s medical expenses, you can deduct costs that exceed 7.5% of your adjusted gross income (AGI).
Tip: Ensure that your parent qualifies as your dependent under IRS rules before claiming any credits or deductions
2. Paid Family Leave
State Programs: Some states, such as California, New York, and New Jersey, offer paid family leave to care for a sick or aging family member. This can provide partial income replacement while you take time off from work to care for your parents.
3. Social Security Benefits
Spousal Benefits: If your parent is a widow or widower, they may be eligible for spousal Social Security benefits.
Tip: You can help manage your parent’s Social Security benefits, such as applying for assistance or managing payments.
4. Veterans’ Benefits
Aid and Attendance Benefit: If your parent is a veteran, they may qualify for this benefit, which helps cover the costs of home care, assisted living, or nursing home care.
Tip: Contact the Department of Veterans Affairs (VA) to learn about specific eligibility criteria.
5. Long-Term Care Insurance
Care Coverage: If your parent has long-term care insurance, it may cover in-home care, nursing home care, or assisted living costs.
Tip: Review their policy to understand what is covered, including services such as home health aides and respite care.
6. Government Assistance Programs
Medicaid: This federal and state program may help cover the cost of long-term care, including home health aides and nursing homes, for low-income seniors.
Supplemental Security Income (SSI): If your parent has little income and resources, they may qualify for SSI, which provides financial support for basic needs.
Tip: Each state has its own eligibility requirements for Medicaid, so be sure to research your state’s guidelines.
7. Employer Benefits
Elder Care Programs: Some companies offer elder care assistance, including counseling services or help finding local resources for senior care.
Flexible Spending Accounts (FSA): You can use FSAs to pay for eligible medical expenses for your dependent parent.
Tip: Check with your HR department to see if your employer offers elder care resources or support.
8. Community Resources
Meals on Wheels: This nonprofit provides free or low-cost meals to homebound seniors, helping you reduce food costs and ensure your parent is eating healthy.
Adult Day Care: Many communities have adult day care centers where your parent can spend the day in a supervised setting, giving you a break from caregiving.
Tip: Look into local government programs or nonprofit