[Last updated November 3, 2025]
Tax season can be a stressful time of year, especially for caregivers. On top of providing much-needed care for a family member or loved one, you’ll have to coordinate the filing of your taxes and potentially your loved one’s as well. This is difficult for many people since tax filing can be stressful and confusing. To help alleviate some of this tax-related stress, we’ve put together a guide on tax planning for caregivers.
Determine if your loved one qualifies as a dependent
Those who can claim their older parent or loved one as a dependent are typically eligible for additional tax breaks. For a loved one to be eligible to be claimed as a dependent:
- They must be related to you or live with you all year.
- They must have earned less than $5,200 in taxable income in 2025.
- You must have paid more than half of their support for the year, among other requirements.
The Internal Revenue Service has an FAQ page that outlines the criteria for a caregiver to claim someone as a dependent. Be sure to check back each year to ensure the criteria haven’t changed.
Determine if your parent has to file taxes
It’s important to know whether your parent has to file taxes. If they are required to file but don’t, they could face serious consequences from the IRS.
Some older adults may still have to file taxes while in retirement, but if their income falls below a certain threshold for the year, they will not have to file. Some or all payments from pensions or certain types of retirement accounts may be taxable. Some seniors also must pay federal income taxes on their Social Security benefits, depending on their income and filing status.
The IRS has an interactive tool on its website that helps you determine whether you and your loved one need to file. If a tax professional files your taxes, it’s a good idea to double-check the results with them.
Find out if tax code changes affect you
The tax code is a seemingly never-ending document that is constantly changing. For those who haven’t kept up with the latest changes, here are some of the most prominent ones that may affect you or your loved ones:
- 1099-K changes are taking effect for 2025. Third-party settlement networks, like Venmo, PayPal, Square, eBay, and more, are required to issue 1099-K forms for payees who are paid over $2,500 in a year for goods and services. This threshold has been drastically decreased from previous years.
- As mentioned above, the income limit of dependents has been increased to $5,200 for tax year 2025.
- Tax-deductible limits for long-term care insurance premiums have changed as follows:
| Age range | 2024 limit | 2025 limit |
| 71 and over | $5,880 | $6,020 |
| 61-70 | $4,710 | $4,810 |
| 51-60 | $1,760 | $1,800 |
| 41-50 | $880 | $900 |
| Under 40 | $470 | $480 |
Gather important tax documents
One challenge of preparing for tax season is finding and preparing the right documentation. Below is a short list of documents you’ll need for both you and your loved one (if your parent needs to file taxes):
- W-2s.
- 1099s.
- Investment profit/loss statements.
- Receipts for tax-deductible expenses and donations.
Be sure to consult with a tax professional to ensure you have all the proper documentation in order before filing your taxes. There might be other forms you need to provide, depending on the different types of income and accounts you have.
It’s important to remember that not all these forms will be available as soon as January rolls around. You may have to check periodically and wait for forms to become available.
See if you qualify for caregiver deductions
Some caregiver expenses can be tax deductible. Eligible deductible expenses may include:
- Assisted living, nursing home, and home health aide costs, when incurred for medical reasons.
- Medical and therapeutic services.
- Prescribed medication and medical equipment, including hearing aids and walkers.
- Transportation for medical appointments.
Check with a trusted tax professional or consult the IRS’s information on its website for a more complete list of deductible expenses.
Hire a tax professional
While you can file your own taxes, it might be a challenge if you have complex issues like being a caregiver and potentially having an adult dependent. Filing your own taxes can take quite a bit of time, and doing so requires great attention to detail. Sometimes tax matters are best left to the professionals. Enlisting the services of a certified public accountant can give you peace of mind that your taxes have been filed accurately.
Although hiring a CPA may cost more than using tax-filing software, it can be an excellent investment. A CPA can find tax deductions and credits you didn’t realize you were eligible for. They can also help you with tax planning throughout the year. Having a solid, year-round tax strategy can help you save even more money on your tax bill.
Prepare for tax season with confidence as a caregiver
As a caregiver, tax time can add another layer of stress to your already full plate. With the right approach, though, you can prepare for tax season more confidently. Make sure you understand your eligibility for caregiver-related deductions, know whether your loved one needs to file, and stay on top of the latest tax updates. Don’t hesitate to seek help from a tax professional. Doing so can simplify the process and potentially save you money.
This information is for educational purposes and is not legal, financial, tax, or investment advice. It should not be substituted for information from professionals authorized to practice in your area. You should always consult a suitably qualified professional regarding your specific situation.
