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Starting the journey

Are you wondering whether your parent or loved one is safe, healthy, and happy while they’re living alone and you’re not around? It’s a common concern for adult children, but it can be difficult to know when and how to ask questions or pry into their living situation. 



If your loved one is struggling as they live alone, the prospect of actively addressing the problem may seem overwhelming. Many factors can weigh on your mind: wondering if it’s the right time for senior living, considering which senior living community is right for your parent or loved one, and worrying whether your parent or loved one will be happy there. 

In addition to all of those factors, you may hold negative senior living community stereotypes—snippets from movies and TV shows, or memories of visiting your own great-grandmother in a nursing home decades ago. Want to know some good news? That cold, sterile, and hospital-like environment common in the popular imagination isn't accurate when it comes to the actual experience of living in today’s modern senior living communities.

We’re here to break down stereotypes and dig into the essential information you need to know about today’s senior living communities, ways they support your parent’s or loved one’s happiness, and strategies for choosing the best senior living community for your parent or loved one.

Download a PDF version of this guide by filling out this form, or keep scrolling to read.

The Holistic Approach to Aging and Health with Senior Living
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Common Stereotypes About Senior Living 

Our culture perpetuates many misconceptions about senior living communities. Therefore, it should come as no surprise that over 60 percent of people want to stay in their current living space as they age.

 

Common stereotypes about senior living communities include the idea that senior living is only for old or sick people or that these communities are only for people who “have to” be there. Possibly one of the worst misconceptions is that families are abandoning their loved ones when they move into a senior living community. These stereotypes can be harmful, preventing seniors from experiencing all that a senior living community has to offer and living their best lives.

The reality is that senior living isn’t for “old” people, nor are seniors being abandoned when they move into these communities. Senior care facilities in the 1950s were clinical, sterile environments that didn’t focus on the resident as a human, but senior living communities of today are drastically different. They focus on improving the quality of life for those 55 years of age and older, providing a welcoming, comfortable environment that feels like home and focuses on the mental, social, and spiritual dimensions of wellness. 

Senior living communities support residents’ health goals so they can live healthier, longer lives. Amenities and conveniences at these communities also relieve stress and improve the residents’ day-to-day life. When adult children know that their loved one is thriving in the right senior living community, it alleviates the strain they feel as they support their aging parents.

A caregiver and a resident smiling together

Types of Senior Living 

Each senior living community offers one or more types of lifestyle options, depending on the unique care needs of the residents. These lifestyle options feature specific services and perks that provide the exact level of support residents require.

Independent Living

The independent living option is great for seniors who no longer want to deal with the difficulties of homeownership and prefer a low-maintenance lifestyle. An independent living community provides housekeeping services, grounds maintenance, and other services that your loved one would normally have to take care of when living alone in a house. 

Independent living is best for seniors who:

  • Don’t require active levels of assistance
  • Still manage their daily activities
  • Want fewer chores and a convenient, fun social schedule
  • Enjoy learning new things and making new friends

Assisted Living

An assisted living option balances support and independence. In these communities, seniors get hands-on support for daily activities while doing new things, making new friends, and participating in new opportunities. 

Assisted living care levels vary for each resident depending on what they need. These care levels may include medication management, comprehensive care, or assistive care. Caregivers in these communities can help with showering, dressing, and other services. Many assisted living communities also handle laundry and housekeeping, which may be included in the monthly cost. 

Memory Care

Memory care communities offer specialized care for residents with Alzheimer’s disease and other forms of dementia. These communities provide a structured environment with set routines tailored to individual needs and preferences as well as security measures to prevent residents from wandering away from home. 

Individuals who require memory care have specially trained staff members on hand to assist with all needs, including personal care such as eating, dressing, bathing, walking, and social activities. 

Some assisted living communities offer memory care services, and there are some similarities between memory care and assisted living environments. However, for safety reasons, memory care apartments don’t provide certain features (e.g., a kitchen) typically available in assisted living apartments. Residents in memory care also receive extra attention to help them feel safe and participate in activities specially designed to promote cognitive function. 

A family and a dog smiling together

Benefits of Senior Living Communities

Senior living communities focus on catering to the residents who live there. Therefore, senior living communities offer plenty of amenities and services that are designed to anticipate the needs of the residents as well as enhance their lifestyles. 

From pet-friendly accommodations to family-friendly design, private dining rooms, personalized activities, and on-site services (for example, fitness classes or salons), senior living communities provide a range of amenities. The best senior living communities take a holistic approach to aging and support residents in living their best lives. This includes resources and activities to help residents stay mentally and physically healthy while enriching their social and spiritual lives. 

At Cedarhurst Senior Living communities, our Living TRUESM commitment involves tailoring daily activities, amenities, and meals to our residents by understanding all of their needs and preferences.

1. Physical Benefits of Senior Living 

When done right, senior living makes wellness easier and more fun. At Cedarhurst, we look at the whole picture of physical wellness. For example, we don’t just provide delicious, nutritious food options for our residents. We also provide options for physical fitness, including beautiful grounds and trails for walking with friends or pets. Let’s dig into the details.

Healthy, Delicious Food

At Cedarhurst, we offer our Crafted By CedarhurstSM culinary program. This program provides robust menus that feature regional dishes, comfort foods, and seasonal favorites while meeting the nutritional needs and preferences of residents.

Eating healthy is good for the body, but good food is more about more than just the right ingredients. It’s also about taking joy in food choices that support our residents’ well-being.

We offer meal choices such as:

  • Heart-healthy options for residents who want to focus on their cardiac health
  • Boost Your BrainSM options that provide nutrition for  strengthening and preserving cognitive functions
  • Gluten-free options to manage gluten intolerance
  • Diabetic-friendly options that feature sugar substitutes
  • Low-sodium options that have reduced salt for those who are monitoring salt intake

In addition to these delicious choices, our culinary program menus regularly offer favorite items including all-day breakfast food and fresh daily soup! Daily specials vary depending on the region and reflect local tastes and culture, with freshly sourced ingredients.

Check out some of our top meal options. 

Physical Fitness

Physical activity is one of the most important things your parent or loved one can do for their health. It delays or even prevents many health problems that happen as we age. It can help improve mental clarity, reduce your parent’s or loved one’s risk of falling and bone injuries, and reduce the risk of stroke, heart disease, dementia, depression, and diabetes. However, starting and sticking to a physical fitness routine can be difficult for anyone. 

Sticking to a fitness routine can be easier with a gym in the neighborhood or by living in a highly walkable area. Depending on the senior living community you choose, your loved one could have those things just outside their front door. Many senior living communities provide amenities such as walking trails or gyms to encourage residents to become healthier. Exceptional communities even offer daily fitness classes that combine fun, socialization, and wellness!

Gyms in senior living communities are stocked with easy-to-use, safe equipment and may be staffed by personal trainers who can answer any questions or even create fitness plans tailored to your parent or loved one. It can be much easier for your parent or loved one to stick to a gym routine when the fitness center is steps away from their apartment. Additionally, living in a community means your loved one will have the support of other wellness-conscious residents.

Living among others who are conscious of their wellness and physical fitness routines can also inspire your parent or loved one to get moving. Seniors who have diverse social supports and high levels of socialization are more likely to follow a physical fitness routine and incorporate physical activity into their daily habits. For example, exercise classes with other residents can support socialization and help widen your parent’s or loved one’s social circle by encouraging contact with residents with similar interests.

Nature Paths for Walking

At the right senior living community, those who prefer nature will find beautiful grounds with maintained nature paths for walking with friends and family or even a four-legged furry companion. 

People assume that senior living communities don’t allow pets, and even just ten years ago, that was true. However, many senior living communities today don’t just tolerate pets—they welcome them. These communities provide dog parks and walking trails so residents and their furry companions can get exercise in. Research shows that dog owners walk approximately 22 minutes longer than those who don’t have a dog. 

Maintaining physical fitness isn’t the only benefit of taking a pet out for a stroll. The pets themselves also provide benefits to physical health such as reducing blood pressure and stress-related hormones like cortisol. Research has shown that pets may decrease stress as well as improve heart health.

2. Mental Benefits of Senior Living

Our social circles naturally tend to get smaller as we age. This begins at retirement when work colleagues no longer provide a point of contact each day. Additional factors that dwindle social circles include friends and family moving away, and friends passing away. Transportation difficulties and an empty social calendar can also contribute to feelings of isolation and loneliness. 

Social isolation can lead to health complications such as:

  • Depression
  • Anxiety
  • High blood pressure
  • Higher risk of heart disease
  • Decreased immune response
  • Cognitive decline
  • Safety concerns (if your parent or loved one is living at home alone)

A potential solution to feelings of loneliness and isolation comes with a robust life in a senior living community. Let’s explore some of the top mental health benefits of living in a senior living community.

Improvement in Quality of Life 

In a senior living community, residents have the ability to walk down the hall and talk with a friend, participate in scheduled and spontaneous activities, and share meal times with old and new friends. However, an active social circle isn’t the only thing that contributes to an improved quality of life; it’s also the pets. 

At Cedarhurst, we recognize that pets are just as much a part of the family as the people in it. Not only do pets contribute to a more active physical fitness routine, but they also provide companionship and unconditional love. 

Positive benefits of having a pet include boosting the owner’s mood, reducing loneliness, and providing social support. For example, pets frequently sense their owner’s emotions and needs and respond by giving them love and attention. Dogs are often used as a form of therapy because they have the ability to interpret body language, tone of voice, and gestures and know when someone is struggling. 

Reduced Stress

Feelings of stress are a normal human reaction, and they happen to everyone. The human body is designed to react to stressful situations. However, when stressors continue for an extended period of time without relief or relaxation, they impact our biological processes, which can lead to negative health consequences. Long-term stress can:

  • Cause wear and tear on the body such as a weakened immune system, high blood pressure, and depression
  • Worsen existing mental health problems, gastrointestinal problems, and cardiovascular diseases

Whether your loved one’s stressors include taking care of a family home that’s too big, coping with a reduced social circle, or struggling with landscaping or meal preparation, senior living communities address these factors. They take care of housekeeping, meals, and landscaping so your parent or loved one can cross all of these tasks off of their to-do list.

Senior living communities also focus on connection and recognize how crucial it is to senior health. Friendships can be more difficult to start and maintain as we age. However, senior living communities regularly offer the opportunity to meet and connect with new friends and neighbors. 

Socially active people are better equipped to handle stress, and as a result of being around others, seniors can feel more welcome, comfortable, and relaxed. This reduces the risk of stroke or heart attack while also reducing blood pressure. Additionally, an increased ability to manage stress can boost the immune system. 

Cognitive Benefits

According to research, there's a link between loneliness and the development of dementia. Individuals between the ages of 45-64 who are frequently lonely are more likely to develop Alzheimer’s disease or dementia later in life. However, recovering from loneliness during this period of time can make an individual less likely to develop these conditions.

Socialization, therefore, is crucial to cognitive health, and senior living communities such as Cedarhurst make sure there are plenty of opportunities for nurturing existing social connections and making new ones. Whether it’s special events, programming, or even dinner with other residents, there are plenty of opportunities to support socialization and cognitive function. In fact, those who have frequent social contact have a cognitive decline rate of approximately 70 percent less than people who are isolated.

3. Social Benefits of Senior Living

Connection is important, and senior living communities make connecting with neighbors and friends much easier than living in a house. Residents of senior living communities experience a vibrant atmosphere with plenty of opportunities to make connections and thrive. 

Opportunities for New Friends

Your parent or loved one may wonder how they’ll make new friends and fit into a senior living community. Senior living communities make starting a new friendship less stressful and more convenient. Shared spaces such as game rooms, hobby rooms, fitness centers, and dining rooms create natural opportunities for connection, so your parent or loved one can find a new friend or two at events or just by participating in things they love to do!

Socialization has numerous benefits, such as improved mental health, mood, cognition, memory, and even exercise habits. Senior living communities provide daily opportunities for social connection such as activities, volunteer opportunities, and classes.

Senior living provides a town-like atmosphere with friendly neighbors, routines, and special events. Residents have the opportunity to volunteer at local organizations in the wider community, support local businesses by taking the community bus to their favorite shops and restaurants, and attend other events or farmers markets.

Pet-friendly communities don’t just benefit the residents who have a pet, either. Residents who don’t have a pet often visit the apartments of residents with a dog or cat, and staff members often carry treats for the pet when they’re visiting. Additionally, people who have a pet are approximately 60 percent more likely to get to know others around them.

4. Spiritual Benefits of Senior Living 

Aging gracefully isn’t about avoiding wrinkles; it’s about embracing rather than fearing age and building a life that one chooses, no matter what one wants from the future. At Cedarhurst, we empower our residents to live a life of their choosing through our commitment to Living TRUESM.

Our TRUE acronym keeps us anchored to our core values:

  • Tailored to You: We don’t believe in communities with a one-size-fits-all approach, and we don’t believe that lives are one-size-fits-all, either. We listen to all of our residents and help them shape the life that they want and deserve.
  • Relationships of Integrity and Trust: Relationships are what make life worth living. We strive to build an environment of joy where our residents can continuously make new friends. Our staff also values every resident as an individual and partners with them to ensure they make the most of this new step in their life.
  • Uplifted to Live Your Best Life: We ensure our residents have what they need to live life on their own terms and help them live as independently and happily as possible.
  • Excitement of the Senses: The five senses are a connection to the world around us. We stimulate our residents’ senses with beautiful grounds, delicious foods, and opportunities for joy. 

When residents move into one of Cedarhurst’s communities, we ask them to complete a survey that tells us all about them. We want to know our residents well and know how to tailor their experience just as they like it. After this, four times a year we solicit suggestions for enrichment activities and programs your parent or loved one would like. Living TRUESM is all about our residents, which is why we ask. 

Our core belief is that every person should feel loved, valued, supported, and able to safely live life to the fullest. This is the foundation of every Cedarhurst community, and no matter whether your parent or loved one is a resident in independent living or receiving a level of care in assisted living or memory care, we strive to ensure that they’re satisfied, happy, and safe.

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When Is It Time for Senior Living?

One of the most emotionally taxing decisions is knowing when is the right time for senior living for your parent or loved one. You may be concerned about whether your parent is doing okay at home and if they’re thriving, safe, and healthy when you’re not around. Many adult children face these common worries, but they struggle with when and how to ask questions. 

A few signs that it may be time to start looking for senior living solutions for your parent or loved one include when they are:

  • Experiencing some falls at home or while out and about
  • Dealing with a complex medication regimen or making medication mistakes
  • Not eating well or having inconsistent meals
  • Struggling with feelings of isolation or loneliness.
  • Living with chronic pain
  • Facing a diagnosis of Alzheimer’s disease or dementia
  • Struggling with daily personal care tasks or with personal hygiene

Senior living communities have skilled staff members on hand to help your loved one with any and every task. Whether it’s handling medication management, ensuring they’re eating consistent and healthy meals, or providing extra emergency support to help your parent or loved one in the event of a fall, a senior living community provides the support they need so they can thrive, safely and happily.

Download a PDF version of this guide by filling out this form, or keep scrolling to read.

The Holistic Approach to Aging and Health with Senior Living
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How Do I Choose the Right Senior Living Community? 

Choosing the right senior living community isn’t easy. You’ll want to do plenty of research to make sure it’s the best community for your parent or loved one and that it has all of the amenities your parent or loved one is looking for. 



To find the best community for your parent or loved one, evaluate the following points:

  • Determine the best location: Does your parent want to be closer to other loved ones or in a new community?
  • What type of care is required: Evaluate whether your parent or loved one doesn’t need active levels of assistance (independent living) or if they need support for some daily activities while also having access to enriching activities (assisted living). If your loved one has received a diagnosis of Alzheimer’s disease or other type of dementia, a memory care community can provide the ideal level of care they require.
  • Determine financial considerations: Amenities and services vary by senior living community, and they may also carry additional associated costs. Consider different options when you’re looking for a senior living community for your loved one, and balance desired amenities against your family’s financial considerations.

Our quick, free assessments can help you determine your loved one’s next steps. Find out if it's the right time for senior living with our assessment.

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Is it the right time for senior living? Learn about your options and get personalized results in about 4 minutes.

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How can I access my parent’s or loved one’s tax-related documents? 

If you’re caring for an ailing parent, you may have recently taken over their finances. Managing someone else’s finances, though, can present some significant hurdles. 

One of the challenges adult children encounter when helping their senior loved ones with taxes is documentation. Your loved one may have boxes full of disorganized receipts, or they may keep bank accounts you can’t access. You might not know whether they earned any income, how much they earned, or whether they have deductions and in what amounts. 

For many families, the process of filing taxes begins with finding all of the important financial information. This is especially true when an older loved one faces a sudden illness. 

If Your Loved One Cannot Help with Tax Information

If your parent or loved one has dementia or another serious impairment, you might need to petition for guardianship or conservatorship. This will give you access to their records so you can begin tending to their finances. An estate or family lawyer may be able to help with this process. If possible, get an early start, well before taxes are due. 

If Your Loved One Can Help with Tax Information

If your parent or loved one is fully competent, it’s critical to work with them as a partner. Don’t swoop in and try to take control of their finances. Instead, simply offer to help. 

Ask them what they need, and consider talking to them about a long-term plan for their financial stewardship. What if they develop a serious medical condition or are no longer able to make their own decisions? The right legal documents can help you work on their behalf, including accessing key documents from the IRS and Social Security Administration.

The Importance of Estate Planning

Estate planning is an important aspect of tax and financial planning, so don’t neglect it. If your loved one is still independent, get a plan in place before you need it. A financial power of attorney may be your most important document if your loved one experiences a sudden injury or other hardship that means they cannot attend to their own financial affairs.

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What if my family can’t afford our taxes? 

A big tax bill can be scary, especially if you’re used to owing nothing or even getting a refund. You don’t need to panic; approach the bill methodically, and keep in mind the resources at your disposal if you need help. 

It’s important to file your return on time, even if you can’t pay your taxes in full. The IRS recommends paying as much as you can upfront. Doing so can reduce penalties and interest. Every tax situation is different, but the IRS is generally willing to work with people who make an effort to pay their taxes and who do not hide their income. 

In many cases, you may be able to set up an installment payment plan for a small fee. With this plan, you’ll make payments each month. In some cases, the IRS may also accept an offer in compromise. This is when you offer a settlement that repays your tax debt for a portion of what you owe. 

Before pursuing these options, consult a tax professional for advice on your family’s specific situation. There may be other, more strategic options to pay down this year’s bill and to keep next year’s bill from being high.

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Where can I get additional tax help?

Taxes can be intimidating , especially if you’re unsure about what you can claim or worried about your tax bill. Filing a loved one’s taxes can be exhausting and is a major contributor to caregiver burden.

To find additional help, consider using these resources: 

For more guidance, download the Senior Living Taxes Guide. 

Frequently Asked Questions


What basics should I know about paying my parent’s or loved one’s expenses and how that impacts tax payments?

The costs of caring for an aging relative can be immense, even without the added burden of a big tax bill. Not only can you incur expenses related to senior living, but you also may lose income by spending time away from work or paying for childcare. 

It’s important to work with a financial advisor to cultivate strategies that can reduce the financial burden of caregiving. Some tax-reduction strategies to explore include: 

  • Claiming your parent as a dependent, if you are eligible to do so: This may mean you can deduct out-of-pocket caregiving expenses on your taxes. 
  • Rightsizing your loved one’s house: This can reduce monthly expenses and may help your loved one find a better living situation. 
  • Assessing your filing status: Sometimes it makes more sense for married couples to file separately, especially if filing jointly moves you into a higher income bracket. 
  • Getting future tax planning advice: Simple decisions, such as transferring money to a retirement account, may have tax implications. Talking to a tax advisor now may help lower your tax burden next year. 
  • Working with a financial advisor: Especially if you’re paying for a loved one’s long-term care, it’s important to ensure you have the right investments to continue funding your family’s needs. 

Do seniors have to file taxes?

There’s no age cutoff at which you no longer have to file taxes. Disability doesn’t affect tax filing status, either, so don’t assume an elderly relative—even one who is ill—doesn’t need to file a return. 

The requirement to pay taxes depends on how much money you make, even if that money comes from freelancing, Social Security, or a hobby. As of 2022, the following income thresholds apply:

  • Anyone under 65 only has to file taxes if their income exceeds $12,950. For married couples filing jointly, the threshold is $25,900. 
  • Seniors 65 or older have a slightly higher income threshold of $14,700, or $28,700 for married couples filing jointly. 

These figures make clear that filing status matters. Sometimes it makes sense for seniors to file individually to shift their tax bracket downward, reduce their tax liability, or eliminate it entirely. However, you won’t know until you have exact figures on you or your loved one’s earnings. 

Social Security and Taxes

Receiving Social Security can slightly complicate senior taxes. Social Security is generally not taxable, but it may become so if you or your loved one have other sources of income. 

Want more specific information about the Social Security and income threshold? The Social Security Administration provides a thorough guide. Generally, if you or your loved one receives Social Security and have no other income, it is very unlikely to exceed these thresholds, so filing taxes probably isn’t necessary. Be sure to verify with a tax professional for your or your loved one’s specific case. 

Are senior living expenses tax deductible?

Before assessing whether senior living expenses are tax deductible, it’s important to consider whether you should bother with itemizing deductions. 

Standard Deductions vs. Itemized Deductions

Everyone is eligible for a standard deduction. This standard deduction reduces your total taxable income. In the case of people with low income, it may reduce your taxable income to nothing at all. This is a common scenario for seniors who depend on Social Security or small investments as their sole source of income. 

If your total deductions are less than the standard deduction, or if you or your loved one have income that is less than the standard deduction, you don’t need to worry about itemizing deductions. It won’t be worth the effort. 


To determine your standard deduction for the upcoming tax year, use the IRS “How Much Is My Standard Deduction?” calculator.


Senior Living and Healthcare Expenses

What if you have significant senior living expenses? How do those expenses impact your or your loved one’s taxes?

Some senior living expenses are tax deductible, but generally only if they qualify as healthcare expenses. This means that most independent living costs won’t be deductible. You may, however, be able to deduct certain services you or your loved one receive in independent living if they are directly related to medical care and health. Those services may include: 

  • Occupational therapy
  • Physical therapy
  • Speech therapy
  • Home health aides
  • Meal preparation 

If you or your loved one are in assisted living or memory care because of a qualifying medical condition, you can usually deduct those expenses—but again, the costs must be directly related to medical care and health. For instance, the basic costs associated with assisted living are deductible, but any additional costs (such as landscaping fees) are not. 

One final caveat for deducting health-related senior living expenses: They have to exceed 7.5 percent of your adjusted gross income. If you have only a few hundred dollars in qualifying expenses, it may not be worth the effort to itemize them. 

Other Senior Living-Related Tax Deductions

In a small number of other circumstances, you or your loved one may be able to seek other deductions while in a senior living community. You can deduct the costs of a dedicated home office space, but only if that space is used exclusively for a home office. 

If you or your loved one run a business out of an independent living apartment (even if it’s just a hobby business and not the primary source of income), you may be able to deduct a proportional share of monthly rent. For example, if the monthly rent is $1,000, and the home office takes up a quarter of the apartment’s space, you can deduct $250 of rent each month, or a total of $3,000 for the year. 

Besides senior living costs, what other expenses can I deduct from my taxes?

It’s easy to focus on senior living expenses at tax time, but these are just a small portion of the expenses you may be able to deduct. 

If you are covering the costs of your parent’s senior living community or claiming your parent as a dependent, it’s important to look at the bigger tax picture. This includes both your tax liability and theirs. Deducting your own expenses and maximizing your eligible credits may mean a lower bill at tax time—or even a refund. 

For seniors filing their own taxes, too, it’s important to consider that a wide range of deductions may apply. 

As of 2022, some of the most common tax deductions include the following: 

Student Loan Interest Deduction

You can deduct a certain amount in student loan interest payments from your taxes. The amount changes every year and may be less than the full student loan interest payment. 

Charitable Deductions

You can deduct charitable donations, usually up to 60 percent of your income. This includes donations of goods but not donations of time—so you can deduct the haul of clothes you gave to Goodwill, but not the hours you spent volunteering there. 

State and Local Taxes

You’re allowed to deduct up to $10,000 of state and local taxes from your federal income taxes, such as property taxes or state income tax payments. 

Mortgage Interest Deduction

You can deduct interest payments on your mortgage for your primary residence. 

Retirement Savings

You can often deduct contributions to a qualifying IRA, as well as money deposited from your paycheck directly into a 401(k). 

Business and Employment Deductions

You can deduct most expenses associated with a business or self-employment. This includes even small hobby businesses. Be sure to deduct both your expenses and, if you are filing on behalf of a parent or claim a parent as a dependent, any expenses your parent incurs if they run a business. Some examples of eligible deductions include: 

  • Supplies, such as those used for making crafts
  • Education, such as continuing education requirements for a professional license
  • Travel expenses directly related to your business 
  • Expenses associated with your office, such as furniture
  • The cost of a home office 

This is not an exhaustive list, and you may be eligible for other deductions. If you anticipate a large tax bill, are self-employed or own a business, or worry about your ability to pay your taxes, it’s a good idea to consult a tax professional for advice on reducing your tax liability. The IRS maintains a list of qualified tax preparers

What are tax credits for seniors?

Like deductions, tax credits help you save money on your tax bill—but in a different way. Tax deductions reduce your amount of taxable income, and tax credits reduce the amount of taxes you owe. 

If your income is $50,000, a $5,000 deduction would reduce your taxable income to $45,000, potentially lowering your tax liability. A tax credit does not reduce your taxable income; instead, it reduces the amount you owe. For instance, if you owe $5,000 in taxes, a $500 tax credit could reduce that amount to $4,500. In most cases, tax credits apply even if you owe nothing. They can increase the amount of your tax return, if you’re eligible for one. 

Some tax credits for which you or your loved one may be eligible include

  • American Opportunity Tax Credit: This credit offers a reduction in your tax bill if you pursue higher education. This includes continuing education or classes at local colleges for seniors. 
  • Lifetime Learning Credit: This is similar to the American Opportunity Tax Credit, but it applies to most forms of continuing education, not just four years of college. 
  • Child and Dependent Care Tax Credit: This probably won’t apply to seniors, but it may be a tax credit their adult children can claim. The eligible dollar amount changes from year to year and varies by number of children. 

If your parent is your dependent, you may claim some of their deductions on your own taxes, such as healthcare costs you cover. Reducing your own tax burden can help reduce total tax costs for your family. It’s important to explore all tax credit options, especially if you are concerned you may face a high tax bill. 

How can I access my parent’s or loved one’s tax-related documents?

If you’re caring for an ailing parent, you may have recently taken over their finances. Managing someone else’s finances, though, can present some significant hurdles. 

One of the challenges adult children encounter when helping their senior loved ones with taxes is documentation. Your loved one may have boxes full of disorganized receipts, or they may keep bank accounts you can’t access. You might not know whether they earned any income, how much they earned, or whether they have deductions and in what amounts. 

For many families, the process of filing taxes begins with finding all of the important financial information. This is especially true when an older loved one faces a sudden illness. 

If Your Loved One Cannot Help with Tax Information

If your parent or loved one has dementia or another serious impairment, you might need to petition for guardianship or conservatorship. This will give you access to their records so you can begin tending to their finances. An estate or family lawyer may be able to help with this process. If possible, get an early start, well before taxes are due. 

If Your Loved One Can Help with Tax Information

If your parent or loved one is fully competent, it’s critical to work with them as a partner. Don’t swoop in and try to take control of their finances. Instead, simply offer to help. 

Ask them what they need, and consider talking to them about a long-term plan for their financial stewardship. What if they develop a serious medical condition or are no longer able to make their own decisions? The right legal documents can help you work on their behalf, including accessing key documents from the IRS and Social Security Administration.

The Importance of Estate Planning

Estate planning is an important aspect of tax and financial planning, so don’t neglect it. If your loved one is still independent, get a plan in place before you need it. A financial power of attorney may be your most important document if your loved one experiences a sudden injury or other hardship that means they cannot attend to their own financial affairs. 

What if my family can’t afford our taxes?

A big tax bill can be scary, especially if you’re used to owing nothing or even getting a refund. You don’t need to panic; approach the bill methodically, and keep in mind the resources at your disposal if you need help. 

It’s important to file your return on time, even if you can’t pay your taxes in full. The IRS recommends paying as much as you can upfront. Doing so can reduce penalties and interest. Every tax situation is different, but the IRS is generally willing to work with people who make an effort to pay their taxes and who do not hide their income. 

In many cases, you may be able to set up an installment payment plan for a small fee. With this plan, you’ll make payments each month. In some cases, the IRS may also accept an offer in compromise. This is when you offer a settlement that repays your tax debt for a portion of what you owe. 

Before pursuing these options, consult a tax professional for advice on your family’s specific situation. There may be other, more strategic options to pay down this year’s bill and to keep next year’s bill from being high. 

Where can I get additional tax help?

Taxes can be intimidating, especially if you’re unsure about what you can claim or worried about your tax bill. Filing a loved one’s taxes can be exhausting and is a major contributor to caregiver burden. To find additional help, consider using these resources: