If you’re between the ages of 25 and 55, you may find yourself providing care for your aging parents and your own children at the same time. People in this group are often called the “sandwich generation” because they’re wedged between dual caregiving responsibilities.
The sandwich generation keeps getting larger, and a national study conducted for the AARP shows that nearly 70 percent of Baby Boomers are assuming these dual caregiving responsibilities. Although millions of sandwich generation members are coping with the demands of caregiving, they often have concerns about the rising costs of healthcare and prescription costs, all for themselves, their children and their parents.
photo credit: dyniss
Your parent may be listed as a dependent, for tax purposes. This will allow you to deduct all of the healthcare and prescription costs you pay for. These deductions may include medical expenses that exceed 7.5% of your adjusted gross income. Qualifying expenses include nursing home costs, in-home healthcare, dental and vision care, and prescription costs.
First, there are tax breaks for the sandwich generation who are helping their parents with their expenses, including healthcare and prescription costs. According to Reuters, you can claim your aging parent as a dependent, even if he or she doesn’t live with you. If your mom is in a nursing home or assisted living facility and you provide more than half of her financial support, she qualifies as a dependent.
Once your parent is a dependent, all of his or her healthcare and prescription costs become yours, for the purpose of deducting them on your tax return. The deduction applies to medical expenses that exceed 7.5 percent of your adjusted gross income, and qualifying expenses include nursing home costs, in-home healthcare, dental and vision care, and prescription costs. Along with the deductions claimed for your child, these moves can save families thousands of dollars each year on their tax bill.
Beyond tax breaks, you can also speak with the doctors who treat you and your family members about federal, state and private patient assistance programs that are designed to help patients of all ages cut their prescription costs.
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