Deducting Medical

The baby boomers are hitting retirement age in large numbers in the next 10 years. Couple with the stock market performance in the horrible way in the last decade and low interest rates on savings, and have lots of children that could provide care for their parents. The question is, can I ask for your parents as a dependent? Also, if I can not meet the test for dependency, can claim some of their medical expenses on my back if I pay them? Hopefully, I can provide some useful answers.

Congress is aware that many adult children provide to parents. The tax law allows some help to those caring for the people who raised them up as a child. Even if your parents do not live with you in your home, you May be able to argue that it is a dependent or to achieve some of their medical bills paid by you, provided that certain criteria are met.

We will go over medical costs later in this article because a parent does not have to be your dependent to claim them, but here are the key guidelines for addiction:

First A parent must be a U.S. citizen or permanent resident;

Second He or she must have a valid SSN;

Third They must be legally recognized as parents;

4th They should not be required to file a tax return is not filed a claim, it means you have income other than Social Security of less than $ 8,000, if you qualify to file a single or $ 19,000 if you are eligible to file a joint in 2012;

5th He or she must get more than 50 percent of their support from you, their child.

Keep in mind that if the number of children helping their parents, only one can claim the parent as a dependent senior year. And if it must be secured by more than 50 percent. If your parents are in an adult daycare, May you be able to claim a tax credit of 20-35 percent of the cost, depending on your income subject to maximum limits.

Now for information on medical deductions. If your parent does not take into account the right of dependent for tax purposes simply because he or she earned too much, but meets the other tests, the IRS allows them to include the dependent deduction for medical purposes. This means that you can add the medical bills that you paid for them on your schedule (depending on the 7.5 percent limit and the standard deduction). Besides doctors, dentists, drugs, etc., do not forget premiums for supplementary Medicare coverage or long-term care insurance if they paid for their parent.

One word of advice at the end, if you are confused about this, and lets face it, Congress seems confusing tax, see tax professional. Get back to your CPA or enrolled agent (EA). Enrolled agents are tax professionals and are usually quite affordable.