tax talk (USA)

Timmyd

2025 was the first year I used paid companion care for DW so that I could go into the office for work. In the USA, if you pay someone to watch spouse with dementia so that you can work or look for work, you are probably eligible for Child and Dependent Care Tax Credit.

This is my first year using this tax credit so I am by no means an expert. I only suggest that if you are in the USA and are using paid care so that you can work or look for work, you should be aware of this tax credit as it can be a sizable amount of savings on your income tax.

If anyone is aware of any other income tax related tips for USA residents who have a spouse with dementia, please share. Thanks.

SDianeL

thank you for this valuable info.

Victoriaredux

https://www.irs.gov/credits-deductions/individuals/child-and-dependent-care-credit-information

added :

https://www.irs.gov/publications/p503

easy23

If you itemize deductions, you can deduct nursing services, and in-home care for a dementia patient. The deductions must exceed 7.5% of your adjusted gross income.

Timmyd

This is another available tax credit in the USA that might apply to some people.

https://www.irs.gov/credits-deductions/individuals/credit-for-the-elderly-or-the-disabled

Rick4407

I did this also, claimed medial deductions. To keep track of it all I opened a separate checking account labeled "Patricia Medical" and used that account for all of my wife's medical and the support salaries. It made the bookkeeping much easier. There were no questions from the IRS. The CPA I use for my taxes prepared the necessary tax forms and things I was required to pay, Soc Sec deductions and W2 for the employee at the end of the year. Every little thing you do to make your life easier helps to get through this disease. Rick