Hello ,

Is any tax benefits for paying for care of elderly parents for " high income " individuals ?

Thanks ,

Oleg

Zip Code: 92103

Medical expenses are deductible to the extent they exceed 7.5% of your Adjusted Gross Income (soon to be 10% due to the new healthcare reform.) Generally, you can only deduct medical expenses paid on behalf of you, your spouse, and your other dependents.

There is a special rule that applies to parents. You can claim medical expenses paid on their behalf under certain circumstances, even if you can't claim them as dependents.

Zip Code: 01801

One other consideration is that payments you make DIRECTLY to a medical provider on ANYONE's behalf are exempt from the general limitations on gifts (IRC 2503(e)).

The same is true for direct payments of tuition on behalf of ANYONE. This is true regardless of your relationship to the person.

You don't get a deduction, but it does get you around the gift tax restrictions that limit you to $13,000 per person per year.

Zip Code: 43085