Caregiving for a parent can be mentally and emotionally demanding. But providing financial support may allow you to claim a tax credit, use a more favorable filing status or deduct certain medical expenses, depending on your situation. Here's what you need to know.
The Credit for Other Dependents (COD) is a nonrefundable tax credit of up to $500 that taxpayers can claim for dependents who don't qualify for the Child Tax Credit, such as an elderly parent who meets IRS dependency requirements.
Under the requirements, you must provide more than half of your parent's support, and your parent's gross income needs to be below the annual threshold ($5,300 for 2026). Only taxable income counts, such as taxable interest, dividends and rental income. Tax-free Social Security benefits are excluded from gross income but must still be considered when determining whether you provide more than half of your parent's support.
Additionally, the COD is subject to phaseout based on your modified adjusted gross income (MAGI). The threshold is $200,000 ($400,000 for married couples filing jointly). The credit is reduced by $50 for each $1,000 by which MAGI exceeds these thresholds.
Important: The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, made this credit permanent. However, as with all tax breaks, future legislation could modify or eliminate it despite its current permanent status.
For unmarried individuals, filing as head of household rather than single can yield significant tax savings. Compared with single filers, head-of-household filers generally benefit from wider tax brackets and a larger standard deduction. For 2026, the standard deduction is $24,150 for heads of household, compared with $16,100 for single filers — making the filing status difference potentially meaningful.
If you're unmarried and pay more than half the cost of maintaining your dependent parent's principal home for the year, you may qualify for head of household filing status. You and your parent generally don't need to live in the same household. To qualify, your parent must meet the dependency requirements for head of household purposes, including the gross income and support tests described above.
For example, Mary is unmarried, and her widowed mother lives with her. Mary pays more than half of her mother's support and more than half the cost of maintaining the household. Her mother's income consists primarily of tax-free Social Security benefits and $1,000 in taxable interest.
In this case, Mary likely qualifies to claim her mother as a dependent and may be eligible for the $500 credit. Because Mary is single and pays more than half the annual cost of maintaining her mother's home, she also likely qualifies for the favorable head-of-household filing status.
If you itemize deductions, you may be able to deduct qualifying medical expenses you pay for yourself, your spouse and your dependents — including a dependent parent. Medical expenses are generally deductible to the extent they exceed 7.5% of your adjusted gross income (AGI).
Meeting the AGI threshold can be easier when you're paying substantial medical expenses for a parent. To deduct a parent's medical expenses, you generally must provide more than half of the parent's support. A parent who fails the dependency gross-income test may still qualify as a dependent for purposes of the medical expense deduction if all other dependency requirements are met.
Important: To deduct a dependent parent's medical expenses, you generally must pay the medical providers directly. Reimbursing your parent for expenses already paid generally doesn't qualify for the deduction. Maintain clear documentation of who paid for what. Deductible medical expenses may include:
To determine whether itemizing makes sense, add up all qualifying medical expenses for you, your spouse and your dependents — including your parent, if applicable. Your total itemized deductions must exceed your standard deduction.
Many families quietly take on caregiving for elderly parents, often without realizing the tax benefits that may be available. Because the rules surrounding dependency, filing status and medical expense deductions are complex, it's worth taking a close look at your family's situation. If you're supporting a parent financially, contact your tax advisor to discuss potential tax-saving opportunities.
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