|
Client
Profile Sabrina is
responsible for providing care to her disabled aunt. Naturally,
Sabrina would like to receive all the tax benefits to which she's
entitled to help ease the financial burden. Sabrina's
first step should be to determine whether her aunt qualifies as
her dependent. Since she's a relative, Sabrina's aunt doesn't
necessarily have to live with her to meet the dependency
requirements. However, in
order for Sabrina to claim the |
dependency exemption,
she must provide for more than 50% of her aunt's total financial
support. In addition, there are restrictions on her aunt's income
and on filing a joint tax return. (Other requirements apply.) Even if Sabrina's aunt doesn't
qualify as a dependent because of gross income or joint return
restrictions, Sabrina may still include any medical expenses she
pays on her aunt's behalf when determining her own medical
deduction on her federal income-tax return. These costs may
include eligible long-term care insurance premiums and
eligible long term care services. |
Sabrina may
also be entitles to claim a dependent care tax credit if her aunt
lives with her and Sabrina pays someone to provide care while
she's working. If you are giving financial
assistance to an elderly or incapacitated relative or friend, call
us. We'll help you take advantage of any tax benefits that are
appropriate for your situation.
| Client Profile
is based on a hypothetical situation. The solutions we
discuss may or may not be appropriate for you. Talk to us
before taking any action. |
|
