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Taking care of father

June 21, 2009

Eldercare courtesy Evelyn Grace LTDHappy Father's Day!

For all you who still have your dad around, be sure to give him a call today. If you dad is anything like mine was, it will be a short call, but I promise you, he will appreciate it.

Some of you live close enough to your families to make a visit today, or any other time, possible.

And still others are actually sharing a home with Dad … or Mom.

You might be thinking of the boomerang kid trend, where young adults move back home, usually right after college, to save some money before completely leaving the nest.

But more and more, the move is the other way, as the data below from the U.S. Census Bureau show:

Family members moving in with relatives

2000

2007

Percentage increase

Parents in adult child’s home

2.2 million

3.6 million

67.2%

Other relatives (e.g., adult child, siblings) in household

4.8 million

6.8 million

40.2%

Grandchildren in household

5.3 million

5.8 million

10.6%


Much of the time, parents move in with their grown kids because everyone wants to avoid the nursing home option. But in today's economy, turning the guest room into a permanent place for the parents often is more cost effective.

Some tax help: When the time comes that your folks do need some help from you, Uncle Sam might be able to offer some assistance, too.

if you provide for the bulk of living expenses for your father (or mother, for that matter), be sure you claim him, her or both of them as dependents on your tax return.

If your parent does qualify as your dependent, you also can count medical costs you pay for mom or dad toward the  medical expenses itemized deduction. Since medical costs must exceed 7.5 percent of your adjusted gross income before you can claim them, a parent's added expenses could help you clear this deduction hurdle.

And if you do need to hire someone to look after your parent so you can go to work, don't forget to check out the Child and Dependent Care tax credit. It could help defray a few of those costs.

Additional older parent resources: These online resources offer tips and advice for adult children caring for aging parents:

  • Medline Plus – The federal government’s compilation of links to services for older individuals and their caregivers.
  • Eldercare Locator — This public service of the U.S. Administration on Aging can put caregivers in touch with local senior services.
  • Family Caregiving 1010 — The National Family Caregivers Association and the National Alliance for Caregiving teamed up to help new caregivers learn the ins and outs of their roles.
  • Nursing Home Compare — This federal government page has detailed information on most every Medicare- and Medicaid-certified nursing home in the country.
  • Assisted Living Costs — This comparison by Seniorcare.com offers a look at the price variations of assisted living facilities across the United States.

Here's hoping that your Dad (and Mom) get to live long, happy and independent lives. But when all of you decide, as a family, that it's time to share a home again, be sure to check into potential tax breaks that might provide.

Updated links Oct. 22, 2020

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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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