The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

3 Tips if You Provide Financial Assistance to an Aging Parent

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Family Finances
Reading Time: 3 mins read
3 Tips if You Provide Financial Assistance to an Aging Parent
10
SHARES
166
VIEWS
Share on FacebookShare on Twitter

 If your parents are getting older, and you’re starting to handle some of their medical or personal bills, there are some smart ways to help financially — without putting yourself in an economic hole.

Here are three financial tips to lighten the load when you’re providing monetary assistance to your Mom or Dad or allowing them to live with you.

Tip #1: Track Down Federal, State and Local Aid

It’s admirable to want to pitch in and help out a parent who might not be in the best shape – either physically or financially – but you don’t need to be a Super Hero or go it alone.

Unfortunately, that’s what millions of adult children are doing every day, and they’re not getting the help and resources for which they or their parents qualify.

For instance, one study from AgingCare found that while a whopping 34 million adults in the U.S. provide medical care for elderly family members. Yet, 63% of caregivers don’t have a plan to pay for their aging parents’ medical bills.

As a result, most caregivers pay small fortunes — out of their own pockets — for numerous expenses, such as prescription medicine or nursing help.

A smarter strategy: take advantage of existing federal and state aid.

At the Eldercare Locator service (www.eldercare.gov or 800-677-1116), you can find local resources available for elderly citizens and their caregivers.

And among the financial assistance programs highlighted on the website of The National Association of Area Agencies on Aging (www.n4a.org), you can track down a variety of resources ranging from discounts on prescription drug programs to information on Social Security benefits.

Tip #2: Bone up on Senior Citizen Benefits

When your parents are age 65 and older, you should also make sure that all of you know about the host of senior citizen benefits to which they may be entitled. You can find many of these benefits by logging onto www.benefitscheckup.org, a service of The National Council on Aging.

This site lets you to find and apply for numerous government and private programs that pay for such costs as your parents’ healthcare bills, food and utility bills.

By tapping into a program that covers these expenses, you will free up cash you would have otherwise spent on those items. AARP.org is another great resource for those 50 and older.

Tip #3: Claim Legitimate Tax Breaks

Finally, be certain that you claim legitimate tax breaks, when possible.

If your parents live with you – and even in some cases when they don’t – part of the financial cost of being a caregiver could be offset by a number of tax benefits.

First up: you may get to claim your parent as a dependent on your federal income taxes, giving you an extra personal exemption on your income tax return.

For the 2012 tax year, the personal exemption amount was $3,800. For the 2013 tax year, the personal exemption amount rose to $3,900.

Remember: an exemption functions just like a tax deduction. It lowers your taxable income, so you wind up paying less income tax.

But just helping your parents out here and there won’t cut it when you’re trying to nab parent-related tax breaks from Uncle Sam.

In order for you to claim your parent as a dependent, he or she must get more than 50% of his or her support from you. Your parent must also meet certain other IRS requirements, such as having an income below a certain threshold.

Check out IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for more information about claiming a parent, another aging relative, or anyone else as a dependent.

You may also qualify for potential tax deductions and credits. For example, you might be able to write off some of the medical expenses you paid for a dependent parent.

And finally, you may qualify for the dependent care credit if you had to hire a caregiver for an elderly parent.

The dependent care credit lets you cut your tax bill whenever you pay someone to care for your parent (or a child or another qualifying relative) because that parent or relative is physically or mentally unable to care for him or herself.

In 2012, the maximum dependent care credit you can get for one qualifying person is $3,000. As of this writing, the IRS has not yet released information about the cap for the dependent care credit for the 2013 tax year. So review IRS Publication 503, Child and Dependent Care Expenses, for the latest information.

Tags: aging parentsdependent care creditIRS Publication 503
Previous Post

How To Avoid Fraudulent Telephone Call Scams

Next Post

Can I Extend the Expiration Date on a Gift Card?

Related Articles

Bible Money Secrets
Family Finances

Teri Ijeoma, Personal Financial Experts Launch Bible Money Secrets

by Lynnette Khalfani-Cox, The Money Coach
bury a loved one
Covid-19

What to Do if You Cannot Afford to Bury a Loved One Due to COVID-19 

by Lynnette Khalfani-Cox, The Money Coach
make a will
Covid-19

COVID-19 Reminds Us Of the Need to Make a Will or Trust

by Lynnette Khalfani-Cox, The Money Coach
SNAP Benefits
Covid-19 Video

COVID-19: Getting SNAP Food Benefits While You’re Unemployed

by Lynnette Khalfani-Cox, The Money Coach
The New Parent Guide to Planning for the Future
Family Finances

The New Parent Guide to Planning for the Future

by Lynnette Khalfani-Cox, The Money Coach
Home Sweet Home
Family Finances

How to Start a Conversation About Money with Your Children

by Lynnette Khalfani-Cox, The Money Coach
Frightening-Financial-Facts
Family Finances

4 Frightening Financial Facts for Halloween

by Lynnette Khalfani-Cox, The Money Coach
Smart Mom Rich Mom
Family Finances

How to Build Wealth While Raising a Family

by Lynnette Khalfani-Cox, The Money Coach
Lynnette Khalfani-Cox
Family Finances

How To Protect Your Estate From Creditors

by Lynnette Khalfani-Cox, The Money Coach
Next Post
Can I Extend the Expiration Date on a Gift Card?

Can I Extend the Expiration Date on a Gift Card?

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist