How Caregivers for Adults Can Save on Taxes in 2025

By Kate Schubel | Originally posted on Kiplinger

Taking care of an older adult, disabled spouse, or other family member can, for some, be as rewarding as it is challenging. Giving your loved one a safe and secure environment is often crucial for their quality of life. But the physical and emotional toll as well as the daily financial costs of caregiving might be daunting.

AARP estimates family caregivers spend an average of about $7,200 per year on out-of-pocket costs for dependents. And that’s not counting the time you can’t work (or maybe work a full schedule) while caring for someone.

Some tax deductions provide relief for childcare. But what about adults? Fortunately, the IRS (and some states) offer several tax breaks for dependents 18 or older that you, as the caregiver, might be eligible to claim on your taxes.

So, let’s look at “qualifying relative” requirements before covering some potential adult dependent care tax breaks.

Qualifying relative test

A caregiver may claim a qualified dependent, like a parent, spouse, or other qualifying relative if all the following conditions are met:

• The dependent is a U.S. citizen, “resident alien,” or resident of Mexico or Canada.

• You paid over half the support for your relative during the tax year.

• You or your relative are not qualifying dependents of another taxpayer.

• The relative lives with you all year as a household member (this rule does not apply to specific relatives, including parents.)

• Your relative’s gross income for the tax year must be less than $5,050 (Social Security income might be excluded if exempt from taxable income).