Ask a CPA

You can deduct as a medical itemized deduction subject to the 10% / 7.5% limitation the costs you paid for Psychiatric, Psychoanalysis or Psychologist for medical care.
You cannot include payments for Psychoanalysis that is part of required training to be a Psychoanalyst.

In the case where there are siblings as shared caregivers of one elderly parent, , only one sibling can take the exemption for the parent. An agreement needs to be reached yearly as to which sibling will take the exemption on their return. The sibling taking the exemption will need to file Form 2120, Multiple Support Declaration, and have all of the other siblings sign the form claiming that they will not take the exemption on their own return.

Family Caregivers must make sure that the parent or relative they are claiming as a dependent deduction has not claimed themselves as a dependent on their own tax return or that no one else has claimed them. You cannot take a dependency deduction for anyone who has claimed themselves on their own tax return. Caregiver s should obtain a copy of the parent or relative’s tax return before filing their return .

A Caregiver that can claim a parent or relative as a dependent may also be eligible for the Child & Dependent Care Credit .

A family Caregiver may qualify for various tax deductions and credits provide they meet certain criteria. You can take a parent or qualified relative as a dependent deduction on your tax return if certain tests are met including income and support. Secondly, a family caregiver may also be able to claim medical expenses they paid on behalf of their parent or relative as an itemized deduction on Schedule A of their tax return.

A family Caregiver is defined as an unpaid relative that helps care for an elderly parent or relative as compared to a Professional Caregiver such as a Nurse's Aide that is paid to provide services.

Many Caregivers provide support and care for elderly parents who are cash poor but house/real estate rich.Caregivers who pay for the care of their parents monthly house and living expenses and medical costs including private nurses should consider treating these payments as loans securing the loan against the parent’s home, in the event the house is sold to pay for nursing home cost , they can recoup the monies they had advanced.

New for 2011, 2012 and 2013 is a concept named portability which allows a surviving spouse's estate to use any portion of the exemption amount not used by the other spouse’s estate.
For 2013 the exemption is $5,250.000.

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It summarizes both your vision for the company and your blueprint for the company’s operating success. The business plan is a written guide that details the start-up and the future direction of your company. For more information go to FundingRoadmap.com