Ask the Tax Editor: Questions on Tax Breaks for Caregivers

Each week, in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week she's looking at four questions on whether you can claim your elderly parent as a dependent on your tax return and more. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Claiming a parent as a dependent

Question: I care for my elderly mom. Can I claim her as a dependent on my 2025 Form 1040?

Joy Taylor: You must meet two rules to claim your mom as a dependent on your federal tax return. First, you must provide over half of her support. Second, your mom's gross income from taxable sources can’t exceed $5,200 for 2025 tax returns (the amount is $5,300 for 2026). If your mom receives Social Security benefits, only the taxable portion of the benefits is included for this purpose. Your mom does not need to live with you for you to be able to claim her as a dependent.

If you meet the tests, you can claim the $500 credit for other dependents on your 2025 Form 1040. However, there is an income limit. The credit begins to phase out when your adjusted gross income (AGI) exceeds $200,000 ($400,000 for married filing jointly).

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

2. Claiming the dependent care credit for a parent

Question: I work and also take care of my elderly father. I pay for his care when I am at work. Can I take the dependent care credit for him?

Joy Taylor: The rules to claim the dependent care credit for an elderly parent are a bit more stringent than the rules for claiming the parent as a dependent. The $5,200 income test doesn’t apply, but the parent needs to have lived with you for at least six months during the year and be unable to care for themselves.

Other rules for the dependent credit must also be met. For example, expenses for the care must be incurred so you can work, and you must report the provider’s tax ID number on IRS Form 2441.

If your dad qualifies as a dependent for this purpose, you can claim a maximum dependent care credit of $1,050 for him on your 2025 Form 1040, depending on the amount of your income. Beginning this year, meaning for 2026 tax returns that you file next year, the maximum dependent care credit increases to $1,500 for one dependent.

3. Medical costs of an elderly parent

Question: My dad is 85 years old and has lots of medical issues. He doesn't live with me, but I pay all of his doctors' bills and other out-of-pocket costs that Medicare doesn't cover. Can I deduct those medical expenses if I itemize on Schedule A of Form 1040?

Joy Taylor: Taxpayers who itemize on Schedule A can deduct qualifying medical expenses to the extent that the total amount exceeds 7.5% of AGI. You can claim medical expenses that are not reimbursed by insurance for yourself, your spouse and your dependents. If your dad qualifies as your dependent (see answer to question 1), then you can deduct his eligible medical expenses that you pay for, subject to the 7.5%-of-AGI rule.

To qualify as a deduction, the expense must be incurred primarily to alleviate or prevent a physical or mental disability or illness. The broad list of eligible expenses includes out-of-pocket payments for medical services rendered by doctors, dentists, optometrists and other medical practitioners; mental health services; health insurance premiums (including Medicare Parts B and D); annual physicals; amounts paid for in vitro fertilization; prescription drugs and insulin (but not over-the-counter drugs); hearing aids; transportation to and from the doctor’s office; the unreimbursed costs of long-term care; and many home improvements to accommodate a disability or illness. For more information about what qualifies, see IRS Publication 502, “Medical and Dental Expenses.”

4. Driving a parent to doctors' appointments

Question: I live in New Jersey, and my elderly mom, who has dementia, lives in Brooklyn in New York City. My mom has Medicare and Medicaid; however, I help out with her medical costs whenever I can and drive her to the doctor's office. Can I deduct the cost of taking my mom to all of her medical appointments?

Joy Taylor: It depends on whether your mom qualifies as your dependent for tax purposes (see answer to question 1). If your mom does qualify as your dependent, then you should be able to deduct the cost of transporting her to her appointments and various other medical costs that you pay for as a medical expense on your Form 1040. Note, you must itemize on Schedule A and medical expenses are deductible only to the extent that total medical expenses exceed 7.5% of AGI.

You can use the IRS's standard mileage rates for medical driving. For 2025, the rate is 21 cents per mile. For 2026, it's 20.5 cents per mile. It seems that you would be able to deduct only the mileage from your mom's place to her doctors' offices. I don't think the cost of you driving from your home to your mom's place and vice versa qualifies as deductible medical transportation.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

Disclaimer

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.