Tax Breaks to Consider When Caring for an Aging Parent

1. Child and Dependent Care Credit (CDCC)
For the purposes of the Child and Dependent Care Credit, a “qualifying person” includes:

An adult dependent (including a parent) who is physically or mentally incapable of self-care, lived with you for more than half the year, and either:

• Is your dependent, or
• Would have been your dependent except that:
  • They had gross income above the threshold ($5,200 for 2025, $5,300 for 2026),
  • They filed a joint return, or
  • You (or your spouse, if filing jointly) could be claimed as a dependent on someone else’s return.

For the 2025 tax year, the CDCC is 20% to 35% of qualifying expenses, up to $3,000 for one dependent or $6,000 for two or more. Qualifying expenses can include:

• Adult day care
• In-home care services
• Assisted care that enables you to work

2. Credit for Other Dependents: If your parent qualifies as another dependent, you may claim the $500 tax credit.

3. Medical Expense Deductions:

A taxpayer may deduct medical expenses paid for a parent if:

• The parent is the taxpayer’s dependent, or
• The parent would have been the taxpayer’s dependent except for:
  • The parent’s gross income exceeds the exemption amount,
  • The parent is filing a joint return, or
  • The taxpayer (or the taxpayer’s spouse, if filing jointly) is claimed as a dependent by another taxpayer.

The taxpayer must provide more than half of the parent’s support, and the parent must be a U.S. citizen, U.S. national, or a resident of the U.S., Canada, or Mexico.

The qualifying expenses include:

• Doctor visits
• Prescription medications
• In-home nursing care
• Medical equipment, such as wheelchairs and walkers
• Therapy
• Home modifications for medical purposes, such as ramps and grab bars
• Other qualifying medical expenses

The IRS allows medical expenses to be deductible only to the extent they exceed 7.5% of your adjusted gross income (AGI) for tax years in which this rule applies.