Caregiving and tax returns
Do you file a tax return and are you a caregiver? In that case it’s good to know which deductions the tax authority allows you to claim. Here we’ll list some tax tips for you. Use them to your advantage!
Unfortunately there are no special tax codes for caregivers, but in some areas the tax authority will be a little more accommodating to you, a caregiver. In particular when you are a caregiver for someone who is part of your household.
Tax deduction of healthcare costs
You can deduct certain healthcare costs for a person age 27 or older, who resides with you and who is dependent on you for care. This involves people who, without your care, would be dependent on professional help or care.
Unfortunately fewer costs were deductible in recent years, but it might still be worth your while. This summary by the tax authority lists all healthcare costs that are deductible.
Note: you must be able to show receipts and proofs of payment for the expenses you deduct by request of the tax authority. That is why you should keep them in a safe place.
Travel expenses for visiting a patient
Is the person who lives with you, and who is dependent of your care, staying at a hospital or care facility for more than one month for the same illness? Do you have to travel more than 10 kilometers to visit the patient? In that case you can deduct the travel expenses for visiting the patient on your tax return.
You are allowed to deduct 19 cents per kilometer when driving your own car, or the actual cost of a taxi or public transportation.
Inheritance tax and caregiver
As of January 1st, 2016, caregivers can no longer make use of the high inheritance tax exemption that applies to partners. Up until January 1st, 2016, it was possible for someone who was a caregiver for an ill parent, or a caregiving parent looking after their ill child, to be the tax partner of the person they were looking after, in terms of the inheritance tax. That was the case when the caregiver and the caretaker were tax partners and meeting specific conditions. Somebody who already had a fiscal partner, was therefore not able to obtain a partner exemption for the inheritance tax as a caregiver.
The court of Breda however, ruled on February 7th, 2015 that a married woman, who for a long time took care of her resident parents, still qualifies for the partner exemption in the inheritance tax. The tax authority has appealed the decision. As long as there is no decision on the appeal, the son or daughter who received an inheritance from his or her resident parent who was dependent on care, can object to the inheritance tax assessment if it concerns a death in 2015 and the caregiver received a caregiver compliment in 2014 Court of Zeeland – West Brabant ECLI: NL: RBZWB:2015:4443).
Additional costs for care
Living with an illness or limitation entails additional costs. Additional costs because the every day life for people in that situation is often more expensive than it is for other people. Additional costs for care, transportation, aids, adjustments and provisions. You can reclaim or compensate for part of these costs. Use it to your advantage! For more information, click this link.
Important note: does the person you take care of pay you from a personal budget? In that case this income is taxable. Depending on your employment relationship, the tax will be deducted from your income or you have to file those earnings yourself with your income tax return.
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