Parents moved in last March when mother started chemo. Before the cancer, she was fathers caretaker after his stroke. They cannot walk and require around the clock attention, I've been renovating parts of the house as money becomes available to give them some independence, but the expenses of two extra people and the stress of 24 hr a day care is taking a serious toll on us. Please tell me there is a tax break somewhere!
You might be able to claim your parents as dependents---but provide some details about their income. If they only have Social Security you can claim them. But if they have other income from pensions, investments, retirement accounts etc.---maybe not.
Use this IRS tool to help you figure out if they can be claimed. If you can claim them you get the $500 credit for other dependents for them. But if you are making modifications to your home to make it handicap accessible for them, you might also be able to claim those modifications as medical expenses.
IRS interview to help determine who can be claimed:
https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent
https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent
MEDICAL EXPENSES
The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.) expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2022—do not include any amounts that were covered by insurance or that are still outstanding. Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.
To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses
2022 STANDARD DEDUCTION AMOUNTS
SINGLE $12,950 (65 or older + $1750)
MARRIED FILING SEPARATELY $12,950 (65 or older + $1750)
MARRIED FILING JOINTLY $25,900 (65 or older + $1400 per spouse)
HEAD OF HOUSEHOLD $19,400 (65 or older +$1750)
Legally Blind + $1750