disabled granddaughter

[Jmonda1965]

Around three years ago my granddaughter became disabled. Since the beginning my wife has been taking care of her in our home. Starting this year she's been getting paid through a company that deals with the state. We just purchased a wheelchair accessible van to transport her to and from hospital and doctor appointments. Is their any advice you can give to help us for our taxes this year.

Thank you for your help

Joseph

[SwapnaM]

Hello Joseph,

I’m sorry to hear about your granddaughter’s situation, but it’s wonderful that your wife has been able to provide such dedicated care.

Here are some tax tips that might help you this year:

Medical Expense Deductions: You can deduct medical expenses that exceed 7.5% of your adjusted gross income. This includes costs of doctor visits, hospital stays, medical equipment like your wheelchair accessible van. 

Home Modifications: If you’ve made modifications to your home to accommodate your granddaughter’s needs, such as installing ramps or widening doorways, these costs may also be deductible as medical expenses.

Caregiver income:  Since your wife is being paid through a company, she should receive a Form W-2 or 1099. If it is a 1099, she may need to report this as self employment income but there are specific rules for family caregivers. https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-... 

Child tax credit/ dependent care credit: If she can be claimed as dependent on your return, you may be eligible for credits. The Ins and Outs of the Child and Dependent Care Credit 

2023 and 2024 Child Tax Credit 

@Jmonda1965   Thanks for the Question!