Medical expenses are deductible
to the extent they exceed 7.5% of your adjusted gross income. As an alternative you can pay for the dependent care with pretax dollars.
This method is restricted to defined limits.
You'll have to participate in your employer's flexible spending plan.
You have to ask your employer to deduct the money from your paycheck
before taxes are applied.
When you submit vouchers for the qualified dependent care expenses,  you will get your money back.
Choose between the tax credit and the flexible-spending account.
One or the other, but not both.
Do the numbers and calculate where you stand.
Usually if you spend more than $2,400 and you're in the 25% tax
bracket or higher, the flexible-spending account will serve you better.
If you and your sibling(s) share the costs of taking care of your parent and together you
contribute more than half of your parent's total support, then one of you can claim
a dependency deduction.
You do have to meet the income test.
Each sibling has to pay for more than 10% of the parent's support.
Each one has to sign the IRS Form 2120 which is a Multiple Support Declaration.
Submit that together with your IRS Form 1040.
It would be good to Learn about the Long Term Care deductions as well.
Learn about the Long Term Care Benefit forms www.1099forms.org/1099_ltc.html |
