Establishing Your Parent as a Dependent

• In order to deduct caregiver expenses, you must establish your parent as a dependent on your taxes. There are two basic qualifications you must meet to claim your parent as a dependent. Your parent should have an income of less than $3,650, as of 2011. Social security income does not usually count towards the income limit, but income from investments and interest will. The second qualification is that you must provide more than half of the support for your parent. According to tax law, your parent does not need to live with you for you to claim him as a dependent. If your parent lived with you for more than half of the year and made more than $3,650, you may still be able to claim the dependent care costs.
  
  

Qualifying Caregiver Expenses

• As your parent grows older, he may not be mentally competent to stay by himself without supervision, or he may need consistent nursing care. You can claim these expenses using the Child and Dependent Care Credit if you can claim your parent as a dependent on your taxes. These expenses can include adult daycare expenses, as well as the cost of an assisted living center. To file for the credit, you will need to use the 1040 or the 1040 A form. You will also need the tax identification number of the care provider.
  
  

Medical Expenses

• Medical expenses that you pay for your parents may also be deducted on your taxes if you choose to itemize. Some of the medical expenses and qualifying caregiver expenses may overlap and you may qualify for both the dependent care credit and the medical expense. You cannot claim the expense in both places. It is important to make sure that you distinguish which expenses you will use for each credit.
  
  

When You Do Not Qualify

• If your parent made too much money during the year for you to claim him as a dependent, you may have to pay the expenses without being able to claim them on your tax return. Your parent may qualify for additional help with daycare assistance or nursing home assistance based on his income. If you cannot afford to help your parent, you may need to look into government programs to help relieve the costs that you are shouldering. Your county’s Social Services Department can help you find these programs. If your parent is a veteran, the VA may provide assistance, as well.