When Your Parents Need Financial Help

You might be entitled to tax breaks if you're helping support your parents.

Your parents may reach a point when they're unable to live alone without financial assistance from you. Some of the expenses you incur to help support your parents may generate tax benefits.

If you provide most of a parent's support, you can deduct some of the cost on your tax return, provided the parent qualifies as your dependent. That means their taxable income must not exceed a certain amount and you must pay for more than half of the parent's living expenses. If you also pay for medical expenses, you can add the cost to the amount you paid for the rest of the family and deduct the amount that exceeds 7.5% of your adjusted gross income.

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