Tax Deductions for Family Caregivers: What You Can Actually Claim

Published April 13, 2026 · 5 min read

You spent $9,400 on your mother's care last year. Prescriptions, copays, an aide two days a week, incontinence supplies, a wheelchair ramp. Your tax preparer asked if you had any deductions and you said "I don't think so." Turns out you left money on the table. Maybe a lot of it.

The tax code wasn't written with family caregivers in mind, but there are real deductions and credits buried in it — if you know where to look and you've kept the right records. Most caregivers don't. AARP estimates that fewer than 30% of eligible caregivers claim the tax benefits they're entitled to.

Claiming Your Parent as a Dependent

This is the gateway to most caregiver tax benefits, and it's where people get confused. You can claim your parent as a dependent if you meet all of these criteria:

• You provide more than half of their financial support. This includes housing, food, medical care, clothing, and other necessities. If Mom lives with you and you cover most expenses, you likely meet this test.
• Their gross income is below the exemption threshold — $5,050 for 2025 (this adjusts annually). Social Security is usually excluded from gross income if it's their only income source. But pension income, investment income, and IRA distributions count.
• They're a U.S. citizen or resident.
• They don't file a joint return (if married).

If multiple siblings share support, you may still qualify using a Multiple Support Agreement (IRS Form 2120). This allows one sibling to claim the dependent deduction if they contribute more than 10% of support and the other siblings agree in writing to let them claim it. Only one sibling claims per year, but you can rotate annually.

Medical Expense Deductions

If your parent qualifies as your dependent (or would qualify except for the income test), you can deduct their medical expenses on your own return. The catch: you must itemize, and you can only deduct medical expenses that exceed 7.5% of your adjusted gross income.

If your AGI is $80,000, the first $6,000 in medical expenses isn't deductible. But everything above that is. If you're paying $9,400 in medical costs for your parent plus your own medical expenses, you can likely clear that threshold.

Deductible medical expenses include:

• Doctor and specialist copays and deductibles
• Prescription medications
• Home health aide costs (if the aide provides medical or personal care)
• Medical equipment — walkers, wheelchairs, hospital beds
• Home modifications for medical purposes — ramps, grab bars, widened doorways
• Transportation to medical appointments (actual costs or the IRS mileage rate — 21 cents per mile for medical travel in 2025)
• Long-term care insurance premiums (age-based limits apply)
• Nursing home or assisted living costs if the primary reason for residence is medical care

That last one is significant. If your parent is in assisted living primarily for medical reasons (dementia care, for example), the entire cost of the facility may be deductible as a medical expense — not just the medical portion.

The Credit for Other Dependents

If your parent qualifies as your dependent, you may be eligible for the Credit for Other Dependents — a $500 nonrefundable credit per qualifying dependent. It's not as large as the Child Tax Credit, but $500 is $500. It phases out at higher incomes ($200,000 for single filers, $400,000 for married filing jointly).

This credit doesn't require you to itemize — it's available even if you take the standard deduction. Many caregivers miss it because they don't realize their parent qualifies as a dependent. If you're handling the finances, make sure you're documenting expenses for tax and legal purposes as you go — it's much easier than reconstructing a year's worth of receipts in April.

For a clearer picture of what you're actually spending, read our breakdown of the real cost of caring for an aging parent. And if you're splitting costs with siblings, a caregiving budget template can help you track what's deductible. For tools that help manage all of this, see our caregiving app comparison guide.

What Siblings Should Coordinate

When multiple siblings contribute to a parent's care, tax strategy becomes a team sport. The sibling in the highest tax bracket gets the most benefit from itemized deductions. The sibling who provides more than half the support has the strongest claim for dependent status.

Here's what to coordinate:

• Who claims the parent as a dependent? It should be whoever benefits most — usually the highest earner who also provides significant support. Use the Multiple Support Agreement if no single sibling crosses the 50% threshold.
• Who deducts the medical expenses? The sibling who claims the dependent gets to deduct the medical expenses. If you're paying medical costs for a parent another sibling claims as a dependent, you lose the deduction.
• Can you rotate annually? Some families alternate which sibling claims the dependent year to year, sharing the tax benefit. This is legal with the Multiple Support Agreement.

Consult a CPA or tax professional who understands caregiver tax issues. The rules are specific and the savings can be substantial — potentially thousands of dollars per year. A one-hour consultation that costs $200 could save you $2,000 or more.

The tax code isn't generous to family caregivers. But it's not empty either. The deductions and credits exist. The problem is that most caregivers are so consumed by the daily work of keeping their parent safe and healthy that they never look. Take an hour. Gather your receipts. Talk to a tax professional. You've already given enough — you shouldn't have to give the IRS money you're entitled to keep. For a side-by-side look at tools that help families coordinate, check our caregiving app comparison guide.