For many seniors, finding the right care means keeping it in the family. Caring for a senior family member can be one of your most important responsibilities. However, it also comes with a significant commitment of time and resources. That may lead many to wonder about the availability of financial relief through tax breaks for caregivers. This post will explore whether Florida caregivers may be eligible for tax breaks.
Does Florida Have Tax Breaks for Caregivers?
One of the reasons so many people choose to retire in Florida is that there is no personal state income tax. Without collecting personal income taxes, Florida lacks the financial flexibility to give tax breaks to caregivers.
However, family caregivers in Florida are still subject to federal income taxes. Let’s look at some ways caregivers might benefit from federal tax breaks.
Claiming a Parent as a Dependent
Some caregivers can claim the parent as a dependent. Even though you aren’t required to live in the same home, there are other strict guidelines. The parent must be a US citizen or resident alien, and they can’t file a joint return. Additionally, no one else can claim you or the parent as a dependent.
Income and support are other key qualifications. You must account for at least half your parent’s support during the calendar year. There is also an income limit for the parent. As of this writing, they can’t have over $5,050 in gross income for that calendar year. However, this amount may change with time.
Deductions for Medical Expenses
Medical expenses offer another tax break for a family caregiver. If you pay a parent’s medical expenses, you may be eligible for itemized deductions. Deductible medical expenses include doctor visits, hospital stays, prescriptions, and medical equipment. These expenses must exceed 7.5% of the caregiver’s adjusted gross income to qualify for deductions. However, you may also add your medical expenses to reach the 7.5% threshold.
While the parent doesn’t need to be a dependent to qualify for these deductions, the rules are strict. Many of the same requirements to claim a parent as a dependent will apply, such as the income limit, not applying jointly, and no one else claiming you as a dependent.
Property Tax Exemptions
Florida property tax exemptions could be an option for some families. While they are not directly for the caregiver, they could offer financial relief. Some Florida counties offer specific property tax exemptions for seniors and disability exemptions. If the senior still lives in their home, these could reduce property taxes.
Every person’s tax situation is unique, and the rules are complex. Caregivers should consult with tax professionals to ensure they get the tax breaks they deserve and avoid penalties.
Do you or a family member need help with long-term care planning? Click here to contact the Scott Law Offices. Our elder law experts are ready to help you understand your rights and get you the necessary care. Reach out now to learn more.
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