Is there a way to write off expenses associated with elderly parents?

[Anonymous]

My parents have no assets and only have social security income. They qualify for Medicare and many government funded programs so we do not claim them as dependents even though we basically support them. They live in a house we own and do not pay rent. We pay for their bills. If they ever need to pay a copay or deductible, we pay for it.

Is there any way of writing off any of their expenses that we pay for?

The house is paid off so we just pay taxes.

[Anonymous]

Can you claim them as your dependents?

If you cared for an elderly parent, your parent may qualify as your dependent, resulting in additional tax benefits for you. A parent may qualify as a dependent if their gross income doesn't exceed $4,700 (tax year 2023) and the support you provide exceeds their income by at least one dollar during the tax year.

[Anonymous]

Anonymous wrote:Can you claim them as your dependents?

If you cared for an elderly parent, your parent may qualify as your dependent, resulting in additional tax benefits for you. A parent may qualify as a dependent if their gross income doesn't exceed $4,700 (tax year 2023) and the support you provide exceeds their income by at least one dollar during the tax year.

I am sure we could claim them but then it would ruin their government benefits.

[Anonymous]

You don't need to claim them as dependents to claim the medical expenses you pay for them.

You can deduct your parent's medical expenses even if they do not meet the income requirement to be claimed as your dependent as long as you provide more that half of their support.
Your total medical expenses, including all costs for prescription drugs, equipment, hospital care and doctor's visits, must exceed 7.5 percent of your adjusted gross income to claim these expenses.

https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34jePeT9

[Anonymous]

They might qualify for Medicaid as a secondary insurance which would eliminate all copays or drug costs.

[Anonymous]

Anonymous wrote:You don't need to claim them as dependents to claim the medical expenses you pay for them.

You can deduct your parent's medical expenses even if they do not meet the income requirement to be claimed as your dependent as long as you provide more that half of their support.
Your total medical expenses, including all costs for prescription drugs, equipment, hospital care and doctor's visits, must exceed 7.5 percent of your adjusted gross income to claim these expenses.

https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34jePeT9

I highly doubt their medical expenses would exceed 7.5% of OP’s AGI. That’s a high hurdle. Sorry OP. They can’t get Medicare etc and be claimed by you for tax deductions. That’s double dipping. What do they use their SS for if you pay all their bills? It sounds like you can easily afford it.

[Anonymous]

Are costs like assisted living and caregivers deductible? If so it’ll be easy to meet that 7.5% threshold.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don't need to claim them as dependents to claim the medical expenses you pay for them.

You can deduct your parent's medical expenses even if they do not meet the income requirement to be claimed as your dependent as long as you provide more that half of their support.
Your total medical expenses, including all costs for prescription drugs, equipment, hospital care and doctor's visits, must exceed 7.5 percent of your adjusted gross income to claim these expenses.

https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34jePeT9

I highly doubt their medical expenses would exceed 7.5% of OP’s AGI. That’s a high hurdle. Sorry OP. They can’t get Medicare etc and be claimed by you for tax deductions. That’s double dipping. What do they use their SS for if you pay all their bills? It sounds like you can easily afford it.

NP but it doesn't have to be just the parents' medical expenses. It's all of OP's medical expenses in a given year, so immediate family + the medical expenses they've covered for the parents. It's still a high hurdle but if OP is here looking for advice I think it's reasonable to assume they are spending quite a bit on the parents, and old people's medical bills can be surprisingly large.

[Anonymous]

Anonymous wrote:Are costs like assisted living and caregivers deductible? If so it’ll be easy to meet that 7.5% threshold.

they are if deemed medically necessary-- that they cannot perform activities of daily living/ have dementia/etc.

to deduct medical expenses for a parent that would potentially be a dependent but is not for income or other reasons, to deduct their medical expenses you have to have provided support equal or over half their income +$1. I was able to deduct about $100k in memory care costs on top of my own medical bills.