Caregiver Tax Deductions & Credits for 2026
Caring for an aging parent is expensive. Between medical bills, home modifications, and possibly reducing your work hours, the costs add up fast. The good news: the tax code offers several ways to recover some of those costs.
This guide covers every tax benefit available to family caregivers in 2026.
This guide is for educational purposes. Tax situations are complex and individual. Consult a tax professional for advice specific to your situation.
1. Claiming Your Parent as a Dependent
If you provide significant financial support to your parent, you may be able to claim them as a dependent on your tax return.
Dependent Credit Value (2026)
Plus potential additional deductions for their medical expenses
Requirements to Claim a Parent as Dependent
- Relationship: Must be your parent, stepparent, or in-law (or treated as such)
- Income limit: Parent's gross income must be less than $5,050 (2026) — Social Security usually doesn't count!
- Support test: You must provide more than half of their total support for the year
- Not a qualifying child: On someone else's return
Your parent's Social Security benefits typically don't count toward the income limit if that's their only income. This means many parents on Social Security alone can still be claimed as dependents.
Multiple Support Agreement
If multiple siblings contribute to a parent's support but no one provides more than 50%, you can use a Multiple Support Agreement (IRS Form 2120). This allows one sibling to claim the dependent if:
- No one person provides more than half the support
- Together, family members provide more than half
- The claiming sibling provides more than 10%
- Others who contributed more than 10% sign Form 2120
2. Medical Expense Deduction
You can deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI). If your parent is your dependent, you can include their medical expenses too.
What Qualifies as Medical Expenses
- Doctor visits and hospital bills
- Prescription medications
- Long-term care services (nursing home, home care)
- Medical equipment and supplies
- Home modifications for medical purposes (ramps, grab bars)
- Transportation to medical appointments
- Long-term care insurance premiums (with limits)
- Medicare premiums
The 7.5% Threshold Explained
You can only deduct medical expenses that exceed 7.5% of your AGI.
Example: If your AGI is $80,000, your threshold is $6,000 (7.5%). If you have $15,000 in medical expenses, you can deduct $9,000 ($15,000 - $6,000).
To claim medical expense deductions, you must itemize deductions instead of taking the standard deduction. This only makes sense if your itemized deductions exceed the standard deduction ($15,000 single / $30,000 married filing jointly in 2026).
3. Credit for Other Dependents
If you claim your parent as a dependent, you may qualify for the Credit for Other Dependents:
Credit for Other Dependents
Non-refundable credit (reduces tax owed but won't create a refund)
4. Dependent Care Credit (In Rare Cases)
The Child and Dependent Care Credit is primarily for childcare, but it can also apply to adult dependent care if specific conditions are met:
- Your parent lives with you
- They're physically or mentally incapable of self-care
- You pay for care so you can work
- The care provider isn't a dependent
Dependent Care Credit (2026)
Up to $3,000 in expenses for one dependent, $6,000 for two or more
Credit is 20-35% of expenses based on income
5. Head of Household Filing Status
If you're unmarried and pay more than half the cost of keeping up a home for your parent (who qualifies as your dependent), you may be able to file as Head of Household.
Benefits:
- Higher standard deduction ($22,500 vs $15,000 for single)
- More favorable tax brackets
Note: Your parent doesn't have to live with you if you pay more than half the cost of their separate home (like assisted living or their own apartment).
6. FMLA Considerations
While not a tax benefit, the Family and Medical Leave Act (FMLA) allows eligible employees up to 12 weeks of unpaid, job-protected leave to care for a parent with a serious health condition. Some states also have paid family leave programs.
What Expenses Are Deductible?
Medical Expenses You Can Deduct
- Nursing home costs (medical portion)
- Home health aide services
- Adult day care (if medically necessary)
- Prescription medications
- Medical equipment (wheelchair, hospital bed)
- Home modifications for medical purposes
- Mileage to medical appointments (22¢/mile in 2026)
- Medicare Part B and D premiums
- Long-term care insurance premiums (age-based limits)
- Dental and vision care
Not Deductible
- Non-medical assisted living costs (room and board if no medical necessity)
- Cosmetic procedures
- General health items (vitamins, gym membership)
- Expenses reimbursed by insurance
Record-Keeping Tips
- Keep all receipts for medical expenses, care costs, and support payments
- Track mileage for medical-related trips
- Document support you provide (rent, utilities, food, medical bills)
- Get statements from care facilities showing medical vs. non-medical costs
- Keep records for at least 3 years after filing
Track Care Expenses Easily
Our Care Coordination Binder includes expense tracking sheets designed for tax documentation.
Get the BinderCommon Questions
Can I deduct my time spent caregiving?
No. The value of your time or services is not deductible, even if you've reduced your work hours to provide care.
What if my parent lives in assisted living?
If your parent is there primarily for medical reasons (not just convenience), a portion or all of the costs may be deductible as medical expenses. Get a statement from the facility breaking down medical vs. room/board costs.
Can I deduct expenses if my parent isn't my dependent?
You can deduct your own medical expenses and those of your dependents. If your parent doesn't qualify as your dependent, you generally can't deduct their expenses on your return.
What about paying a sibling to provide care?
If you pay a sibling to care for your parent, that payment isn't deductible as a medical expense (payments to family members generally don't qualify). However, the sibling receiving payment may need to report it as income.