Your parents will soon need your care and assistance once they reach the point of old age. They are no longer capable of doing the things they used to do. Supporting your aging parent’s needs can be costly, but there are opportunities to lower these expenses.
- Know your old-aged parent’s annual income. You can determine his/her dependence on you if the income reaches not more than $3,000 per annum, or is 50% your yearly income. Your parent’s authentic residential citizenship is also a plus point to claim him/her as a dependent. These residential files and annual income statements automatically reduce costs for medical and other government service expenses.
- Have an accurate list of all the expenses you pay out for the needs of your aging parent. To make this a little more organized, you can draw the list in a table or a diagram. Categorize the expenses into medical payments, clothing, food, transportation, bills (this includes home rental, electricity and water bills) and other miscellaneous expenses, such as recreation. This is very helpful in determining in which area you spend more. Show percentages from every section in the diagram, or total every amount of the table. You are allowed to claim his/her dependency once the list/table/diagram shows that you spend 50% percent or more of her daily expenses. Through this, you are able to avail discounts and free-of-charge services for your elderly parent; or even pick up those insurances that they fail to obtain.
- The cost of your elderly parent’s residential house is one of the biggest spenders in your list. Although it is not in the position of your parent to live inside your house, and it is not your contractual obligation to allow, in some cases he/she should and is needed to. To deduct the amount of your expenses, you should know how much you spend from his housing expenses. Claiming your elderly parent does not mean to really make him live with you. You can also rent an apartment or a separate room for his convenience. The home/room rental also determines the overall cost of your expenses. So this should also be on the list.
- Estimate medical payments. Your aging parent will soon visit hospitals and clinics from time to time because of some bodily troubles and suffering. Medical bills take account of all the medical check-ups, session/therapies, medical treatment and prescriptions/medicines, and other hospital functions. Include in your calculation the insurances used for this matter. All the bills should have a total of 7.5 % estimation in your annual earnings for you to gain the benefit of this government service.
- Even the repair and maintenance to easily and safely accommodate your senior parents should be on your record list. This comprises the renovation of his room or space to ease your parent’s convenience, the elevator set-up, the room’s ventilation, the trouble-free access to get the bathroom, the wheelchair, and even the personal nurse’s wages.
All these things are the criteria for claiming your parent as a dependent. And in order for you to avail such services and to better lend a hand to your parents; you should be able to meet these criteria.