Extra Sat

Dear Sam,

In fact, several tax credits and deductions are available to adult children who help care for aging parents or other family members. Here are some options along with the IRS requirements to help you determine if you are eligible to receive them.

Tax credit for other dependents

If your mother lives with you and you pay more than 50% of her living expenses (housing, food, utilities, healthcare, repairs, clothing, travel, and other necessities) and her 2021 gross income was less than $4,300, you can ask your mother to become a dependent and get a non-refundable tax credit of up to $500.

If you happen to share your mother’s expenses with other siblings, only one of you can claim your mother as a dependent, and that person must pay at least 10% of her support costs. This is called a “multiple support agreement”.

The IRS has an interactive tool that will help you determine if your mother qualifies as a dependent. Go to IRS.gov/help/ita, scroll down to “Credits” and click on “Does my child/dependent qualify for the Child Tax Credit or Other Dependent Credit?” »

Medical deductions

If you claim your mother as a dependent and help pay for her medical, dental, and/or long-term care expenses, and you were not reimbursed by insurance, you can deduct the expenses that exceed 7.5% of your adjusted gross income (AGI).

So, for example, if your adjusted gross income is $80,000, anything above the first $6,000 of your mother’s medical bills — or 7.5% of your AGI — might be deductible when you return. So if you paid $8,000 in medical expenses for her, $2,000 could be deductible. You can also include your own medical expenses in the calculation of the total.

You should also be aware that your state may have a lower AGI threshold, which means you could get a reduction on your state income taxes even if you can’t get one on your federal income taxes. income.

To see which medical expenses you can and cannot deduct, see IRS Publication 502 at IRS.gov/pub/irs-pdf/p502.pdf.

Dependent care credit

If you pay for home care or adult day care for your mother so that you are free to work, you may be eligible for the dependent tax credit which can be worth up to $4,000.

To be eligible, your mother must have been physically or mentally unable to care for herself and must have lived with you for more than six months. To claim this tax credit, complete IRS Form 2441 (IRS.gov/pub/irs-pdf/f2441.pdf) when you file your federal return.

Flexible Health Savings Accounts

If you have a Health Savings Account (HSA) or your employer offers a Flexible Savings Account (FSA), you can use them to pay for your mother’s medical expenses if she is considered a dependent. But be aware that if you use an HSA or FSA to pay for your mother’s medical expenses, you also cannot get a tax deduction on those expenses.

For more information, see IRS Publication 969, “Health Savings Accounts and Other Tax-Favored Health Plans” at IRS.gov/pub/irs-pdf/p969.pdf.

Send your senior questions to: Savvy Senior, PO Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is an NBC Today contributor and author of “The Savvy Senior.”