Ever wish you had a CPA for a sibling? Same. We’re not that, but we do know a few, and we asked them the boring questions on your behalf. Specifically: what tax breaks, if any, actually exist for family caregivers. Their answers likely won’t give you the warm and fuzzies, but it may make April 15th feel a little less offensive.

And because no lawyer has ever missed a chance to be technically correct, ours would like us to remind you that this is not financial advice.

🌈 The vibrant, talented, and childhood-shaping creator of Rainbow Brite, Guntra Graudins Santiago died at 82. 

🧱 A 97-year old grandma credits LEGO’s to keeping her mind sharp.

🏡 Karen Sandone made the difficult decision to sell her dream home when her husband was diagnosed with early-onset Alzheimer’s at 55. 

👠 Holocaust survivor Paulette Dorflaufer has made her New Jersey crossing-guard post her own personal catwalk.

Nobody becomes a caregiver for the tax advantages. You do it because your dad can’t keep track of his prescriptions, your mom shouldn’t be driving anymore, and you were the only one willing to help. AARP estimates that family caregivers shell out more than $7,200 of their own money each year, on average.

It can be thankless work and it shouldn’t be as expensive as it is. While the Internal Revenue Service tax code isn’t exactly overflowing with gratitude, there are a few breaks family caregivers routinely miss. Here’s what’s worth knowing before you file your 2025 return.

Can you claim Dad as a dependent?

For 2025 taxes, the IRS says you may be able to claim your dad as a dependent if the test requirements were met, including: you paid more than half of your dad’s support for the year, he met the IRS citizenship/residency rules, and his gross income was less than $5,200. In some cases, Social Security does not count toward the gross-income test, which is where people often assume they’re out when they may not be. 

If your dad contributed some money toward his own care, that does not automatically disqualify you. The IRS cares less about one Venmo for groceries and more about who footed the bill for a year's worth of meals and medical devices. 

Is head of household still on the table?

If you’re unmarried, you may be able to file as head of household if you can claim your dad as a dependent and you paid more than half the cost of keeping up a home for him. And yes, in some cases, your dad does not need to live with you for the year for this to apply. Tax law contains multitudes. That status can lower your tax rate and change your deduction in a meaningful way, so it’s worth digging into if you think you may qualify. 

What about Mom’s medical expenses? 

If you paid out of pocket for doctor visits, prescriptions, home health aides, dental care, memory care, or other qualifying medical expenses, you may be able to deduct them on Schedule A. But only the portion that exceeds 7.5% of your adjusted gross income counts. 

So if your adjusted gross income (AGI) is $80,000, the first $6,000 of medical expenses gets you nowhere. Spend $10,000, though, and $4,000 is potentially deductible. That deduction applies only if you itemize. 

Does Dad need to file his own tax return?

Maybe. For 2025, if Dad is 65 or older, and his gross income is more than $17,750 (single) or $33,100–$34,700 (married), he generally needs to file.

And income does not just mean a paycheck. Dad may still need to file if he took money from a traditional IRA, 401(k), or pension, earned interest or dividends, or received trust distributions. Social Security can matter too. Some people owe federal tax on part of their benefits if they also have other substantial income.

What about life-insurance proceeds?

If your mom passed away and you received life-insurance proceeds, that money is generally not taxable. The part that may leave you on the hook for taxes is any interest earned on those proceeds. 

Did you donate an organ?

Less common, but often an opportunity for deduction. The American Transplant Foundation’s guide shows that multiple states offer tax relief for unreimbursed living-donor expenses, with the amount depending on where you live. Georgia is leading the country with up to $25,000 in tax credit, Maryland, Utah and others offer up to a $10,000 credit, and Virginia provides up to $5,000 for certain unreimbursed expenses tied to donation.

This is very much a check-your-state situation, because the rules vary and the laws keep moving.

Before you hit submit.

If your situation involves siblings splitting support, a mom in assisted living or memory care, a recent death, or a lot of blurred financial lines, this is one of those years when paying a tax professional may be less frustrating than trying to play deduction detective. The IRS’s Interactive Tax Assistant and the caregiver FAQ are good starting points, but neither exudes ease nor warmth. 

Like you, we’re hopeful the bigger, broader tax credits that are on the horizon make their way to wallets. In the meantime, we’re here to help you keep more money for Mom and give less to Uncle Sam. 

Helpful care-focused finds we’ve identified and researched so you don’t have to. 

Most caregivers didn’t apply for the job, they were drafted into it during an emergency. The Family Healthcare Playbook was made for that moment.

Part framework, part field guide, it helps you navigate medical systems, organize information, ask better questions, and prepare for challenging family conversations before (or during) a crisis.

You said it. This week’s submissions.

"Dad asked me if I thought his neighbor in the room over was cute."

"I now know what it may have been like when Mom was helping Grandpa."

"My mom wanted to fire up the skis when it snowed last week."

"This is hard, and my friends don't get it."

"My Dad got overly angry at the waitress when his stone crab wasn't cracked."