How to Cut Costs While Caring for Aging Parents

Have you had to shoulder some of the burden of caring for your aging mother, father or grandparents? There are steps you can take to better manage these costs. Take a look at some helpful tips from USA Today:

  • Claim Parent as a Dependent: you might be eligible to claim your parents on your tax bill depending on the amount of care you provide.

    To do this, your parent’s income, excluding Social Security, must be less than the amount of the personal exemption. For 2010, the personal exemption was $3,650; for 2011, it’s $3,700. In addition, you must provide more than 50% of a parent’s financial support. If the parent lives with you, you can include a percentage of your mortgage and utilities, says Graham Weihmiller, president of Griswold Special Care, a provider of in-home care.

  • Deduct Your Parent’s Medical Expenses: you can deduct these even if you can’t claim your parent as a dependent. You just need to provide at least 50% of the parent’s financial support. Things like in-home health care, dental care and prescription drugs qualify as included expenses.
  • See If You Qualify for Government Help: 15 states offer “Cash & Counseling” programs for low-income seniors who are eligible for Medicaid. Check with your local Area Agency on Aging office for more information about programs in your state.

Visit USA Today’s Five ways to manage costs of caring for aging parents for more tips on lightening your financial (and emotional) burden.