Today’s Q&A on ElderCareMatters.com is about providing Elder Care Services for your parents

Question:  May I charge for the elder care services that I provide to my parents, and will these services be tax deductible for my parents?

Answer:   In general, the answer is yes and maybe.  If you are providing elder care services that word normally be paid for, you can charge a fee as well.  However, whether you want to do that depends upon a number of factors, some financial, some personal.  If one or both of your parents ultimately needs to apply for Medicaid, any payments made to family members will be scrutinized.  The fees would have to be reasonable for the services provided (as compared to normal providers of that services who have similar qualifications), may require a comprehensive written contract setting out the terms of engagement and be documented and reasonable services given the circumstances (i.e. you cannot charge for 24 hour personal caregiving if your parents are playing tennis 3 times per week).  Some states will require that you report your income from these paid services on a schedule C on your tax return. 

There are also personal issues you need to work around.  Are there other family members providing the care?  Are they going to be compensated as well?  Will they resent you being paid.  How will this work within your parents’ testamentary plans? Will your payments deplete their estate causing friction among the other family members who expected to receive money but will not because your services cost your parents a substantial amount of money.  How will your parents feel about that? 

Tax deductibility is going to depend on if you can convince the IRS that the need for your services was a medical necessity that would qualify them as an unreimbursed medical expense.  If your parents are in a nursing home, these deductions are more easily documented.  For personal services provided by a family member you would need documentation from a physician that the services you are providing medically necessary in the event of an audit.

If you need help with this or other legal elder care matters, you can find Elder  Law Attorneys near you on ElderCareMatters.comAmerica’s National Directory of Elder Care / Senior  Care Resources for Families.  You can also find Elder Law Attorneys on ElderLawAttorneys.us and Estate Planning Attorneys on EstatePlanningAttorneys.us – 2 additional websites
sponsored exclusively by the national ElderCare Matters Alliance.

An ElderCare Matters Partner
Robert M. Slutsky, Esq.
Robert Slutsky Associates
Plymouth Meeting, Pennsylvania
An ElderCare Matters Partner

Recent Posts

Stay in Touch with Elder Care Matters

 Facebook  Twitter  Google Plus  Linked  Blogger

eNewsletter Sign Up

ElderCare Answers

If you need answers to your elder care questions, send your questions to us at:

Answers@ElderCareMatters.com

Answers are provided by our ElderCare Matters Partners, some of America's TOP Elder Care Professionals who have years of experience in helping families plan for and deal with a wide range of Elder Care / Senior Care Services.

All Q&A's are posted on the homepage of ElderCareMatters.com

ElderCare Matters Articles

ElderCare Matters Articles are useful and up-to-date Elder Care / Senior Care articles that are provided by our ElderCare Matters Partners to help you plan for and deal with your family's elder care matters.

If you help familes plan for or deal with elder care matters, then you owe it to yourself and to families across America to become a professional member of the National ElderCare Matters Alliance and to be listed on the many Elder Care / Senior Care Directories that are sponsored by this National Alliance of Elder Care Professionals.

ElderCareDirectories.com

For additional information about professional membership in the National ElderCare Matters Alliance, (including the many benefits of becoming one of our ElderCare Matters Partners) and to download an Application for your Basic, Premium or Partner Membership in the National ElderCare Matters Alliance, visit: ElderCare Matters Alliance.