Are you caring for aging parents? If so, you’ll want to know about the adult dependent exemption

Description

Abstract: Many in their 40s and 50s find themselves caring for children and aging parents while worrying about their own retirement. The combination of these factors can create a substantial burden on personal finances. The adult dependent tax exemption may help, if one qualifies — that depends on the income of both the taxpayer and his or her parents. Even if one doesn’t qualify, it still may be possible to deduct some medical costs. A sidebar discusses long-term care insurance.