When an Elderly Parent Might Qualify as Your Dependent
not uncommon for adult children to help support their aging
If you're in this position, you
might qualify for the adult-dependent exemption.
It allows eligible taxpayers to
deduct up to $4,050 for each adult dependent claimed on
their 2016 tax return.
For you to qualify for the adult-dependent exemption, in most
cases your parent must have less gross income for the tax year
than the exemption amount. (Exceptions may apply if your
parent is permanently and totally disabled.) Generally Social
Security is excluded, but payments from dividends, interest
and retirement plans are included.
In addition, you must have contributed more than 50% of your
parent's financial support. If you shared caregiving duties
with a sibling and your combined support exceeded 50%, the
exemption can be claimed even though no one individually
provided more than 50%. However, only one of you can claim the
Even though Social Security payments can usually be excluded
from the adult dependent's income, they can still affect your
ability to qualify. Why? If your parent is using Social
Security money to pay for medicine or other expenses, you may
find that you aren't meeting the 50% test.
Don't forget about your home. If your parent lives with you,
the amount of support you claim under the 50% test can include
the fair market rental value of part of your residence. If the
parent lives elsewhere — in his or her own residence or in an
assisted-living facility or nursing home — any amount of
financial support you contribute to that housing expense
counts toward the 50% test.
the Financial Burden
Sometimes caregivers fall just short of qualifying for the
exemption. Should this happen, you may still be able to claim
an itemized deduction for the medical expenses that you pay
for the parent. To receive a tax benefit, the combined medical
expenses paid for you, your dependents and your parent must
exceed 10% of your adjusted gross income.
The adult-dependent exemption is just one tax break that you
may be able to employ to ease the financial burden of caring
for an elderly parent. Contact us for more information on
qualifying for this break or others. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,