Paying for Senior Care? Flexible Savings Account May Help You Save on Taxes

I didn’t know about this.

OurParents

If you pay for an aging parent’s care, you may be eligible for some tax-saving options, Forbes reports. For example, consider a son whose mother lives with him:

If his employer offers one, the son could open up a flexible savings account for dependent care (mom would have to be his dependent and live in his house for at least half the year). You can put in $5,000 pretax salary each year to pay for eligible dependent care expenses incurred that year. Typically these accounts are used for expenses for paying someone to watch your kids while you work, but they can work for “sitting” services for mom too. If you’re in the 40% combined federal and state income tax bracket, it’s like saving $2,000. There’s also the federal dependent care tax credit, but for high-income earners, the FSA gives you a bigger break.

The article, “Tax Breaks For Caregiving…

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