Your Proactive Caregiver Advocate: Dr. Cynthia Speaks!
Topic: Preparing Your Loved Ones End of Year Tax Affairs
The end of the year is fast approaching, and as the caregiver to your loved ones, now is the time to gather their essential documents as the year ends. Tax season can be stressful, but planning can save you time and wasted energy. If you would like to make a list, that would be helpful. I can never stress enough the importance of preparation, which provides peace of mind and avoids the ninth-hour rush.
Depending on your situation, you may need essential legal documents that declare you can handle your loved one’s affairs. It is vital when handling financial information or even a living trust, especially if you are named a trustee. You need access to your loved one’s personal information, social security number, social security income, date of birth(sometimes place of birth), government identification, citizenship, sources of income, assets, retirement income, IRAs, 401(k)s, and anything that gained interest over the year. All of this is necessary for income tax purposes. You will also need bank information because tax returns are deposited into banking accounts. On rare occasions, checks are mailed.
News of Importance
If you are the caregiver of an aging parent, on occasion, you can claim your parent as a dependent on your tax return. Specific rules align with this, and you should check with the Internal Revenue Services or a financial lawyer for insight. For example, if you have spent more than your income on your loved one’s support in a calendar year or a loved one gross income is a certain amount (IRS states $4,700). Sometimes, you can deduct approved medical expenses you paid for your loved one that a health insurance company has not paid. There are a lot of rules to consider, so be proactive. You can learn more here:
https://www.irs.gov/publications/p501#en_US_2023_publink1000220939
As Your Proactive Caregiver Advocate, preparing early prevents delays in filing taxes. If you need to seek professional support, now is the time to reach out. Caregivers, your loved ones are counting on you to handle their affairs professionally and on time. Be Safe! Be Well!
Dr. Cynthia J. Hickman is a retired registered nurse and case manager, CEO of Your Proactive Caregiver Advocate. She has released her newest book, The Essential Caregiver Training Course for Corporations and Community. From the Lens of Daughter, Nurse, and Caregiver: A Journey of Duty and Honor, and The Black Book of Important Information for Caregivers.
Website: www.cynthiajhickman.com
