Adult children caring for parents: What to know about filing taxes as a caregiver
As parents grow older and their children do, too, there comes a time when the caregiving role is reversed. And caregiving can be costly.
More than 48 million Americans are caregivers, and the average caregiver spent $7,242 in out-of-pocket expenses in 2021, according to the AARP. Last year, a Caring.com survey found more than half of adults with at least one living parent claimed that parent on their taxes.
Adult children who care for their parents can claim their parents as dependents on their taxes if:
- The parent is a U.S. citizen, a U.S. national or a resident of Mexico or Canada.
- The parent earned less than $5,050 in taxable income last year. Social Security income generally doesn't count, though there are some exceptions.
- You provided over half of their financial support, including meals, housing, medical bills and other living expenses.
Your parent does not have to live with you to be claimed as a dependent, according to Lisa Greene-Lewis, a CPA and tax expert at TurboTax. And you don't need to provide proof you've been covering more than half of your parent's finances. But she suggests keeping those receipts handy in case you are audited.
If you claim your parent as a dependent, then there's no need to submit a return on their behalf, Greene-Lewis said.
Adult children who claim their parents as dependents cannot be claimed as dependents themselves by another taxpayer, and the parent can be claimed by only one caregiver. Other qualifications regarding claiming dependents on your taxes can be found on the IRS website.
Single caregivers get higher deductions
Single adult children who care for their parents will see a larger standard deduction on their taxes, Greene-Lewis said.
Typically, single taxpayers see a deduction of $14,600. But if you file as head of household and claim your parent as a dependent − again, even if you don't live with your parent − that deduction could rise to $21,900.
If your parents give you money to offset their expenses, that money is not taxable to you, according to the IRS.
Can you claim medical costs on tax returns?
Yes, caregivers can claim their parents' medical expenses on their tax returns.
Those deductions must be itemized and total more than 7.5% of your adjusted gross income. That can include insurance premiums, doctor's visit costs, prescriptions and other medical bills.
If you don't have some of those receipts on hand, Greene-Lewis suggests going to the pharmacy where your parent usually gets their medications. The pharmacist should be able to print out a prescription history, she said. You can also go through your own credit card statements to gather the same information.
Madeline Mitchell's role covering women and the caregiving economy at Paste BN is supported by a partnership with Pivotal Ventures and Journalism Funding Partners. Funders do not provide editorial input. Reach Madeline at memitchell@usatoday.com and @maddiemitch_ on X.