Follow
Share

filing taxes for both parents as POA of one and guardian of the other both are 100% disabled. I was appointed guardian of my father then became POA of my mother his retirement , ssi income and long term healthcare plan still dose not cover there bills without having to dip into there CD account for there home upkeep, insurance deductibles and increase of over 1,000 in his life insurance.my mother has no retirement or long term care insurance how do I pay there bills without jeopardizing my mothers future needs if he passes first his retirement will stop at his death and home assistance as well as joint debt will have to come from the existing assets there debt is half of there assets at this time

This question has been closed for answers. Ask a New Question.
Find Care & Housing
igloo-you are welcome! I thought it was an amazing, detailed answer and I wish everyone could see it! :-)
Helpful Answer (0)
Report

Geeves - kudos to you for reposting caregiving's detailed tax prep answer!

I didn't know about Blocks senior tax preparer pros & I've used Block small biz tax pros for decades. My gal at Block was a forensic accountant at a big white shoe law firm before Block and between her expertise & Blocks software does solid job. Most of the others at her branch are former IRS (enrolled agent). I've found Block cost competive or even lower than a CPA.

Senior Tax Preparer... what a great resource!
Helpful Answer (1)
Report

careisgiving gave this answer to another question the other day. It is the most detailed answer I have seen about taxes and wish everyone could read it. AS FOLLOWS: If you have access to a local H&R Block, then ask to speak to a senior tax preparer. Tell the receptionist that you have eldercare expenses to report and you'll only meet with a senior tax preparer. Don't meet with a Level 1 preparer. Ask for the tax preparer's business card - to verify that you're meeting with a Senior Preparer. H&R Block is open late in the evenings and on Saturdays. Appointment with Senior Preparers can be booked weeks in advance from former clients so the receptionist may try to push you into a Level 1 preparer - you don't want this. The Level 1 preparer will kindly step away - and ask the Senior Preparer for help. I used to work for this company many years ago - and the tax preparation training is very comprehensive - the best in the industry, actually. Continuing education on all tax changes is required - every year - before the employee is considered for re-hire the next tax season. Many CPAs are not trained in tax preparation; accounting is different from taxes. It's not as simple as where do I put the income I'm getting from my grandparents. Your and their tax situation need to be critically evaluated as a standalone and together for the best result, i.e, least payment in taxes. Yes, you could do a Schedule C - assuming you're filing as single but this Schedule C income is then added on top of your ordinary income - which will raise your taxable income - which will raise your taxes. Do you want this? Most people want to limit their tax payment. :-) However, If you pay more than 50% of all of your grandparents' expenses - and have kept all receipts/recordkeeping in case you're audited to prove this, then you could file as Head of Household and claim these expenses on Schedule A for itemized deductions. This is also the place where you put the expense of any other caregiver/agency you are paying to care for your elders. If you can't file as HofH, then yes, Schedule C could work for you but it's also based on what else is going on taxwise for you and your grandparents. The CPA who advised to you report it as "all" rental income - is an idiot - a moron. Stay away from this person! To protect yourself in case of an audit, you'll want to note the actual breakdown in numbers. Another CPA said you could be considered an employee?? Seriously?? This is so not necessary and not advantageous to your tax situation. This CPA will create - an unnecessary headache for you if you listen to this person's advice because your grandparents (or rather you or whomever on their behalf) will have to file a separate form - for household employee/employment tax. It's very frightening how many CPAs give incorrect advice. Again, you really should meet with a senior tax specialist at H&R Block - because accounting and tax preparation are totally different. A tax preparer has to review all of your income, expenses (for example, any educational expenses, etc) and your grandparents to guide you to what is the best scenario - for both of you. Google enrolled agent and if you have access to one in your area - pay the money to have your taxes done by him/her - only if you can't get into H&R Block. These agents are the Ph.Ds in tax preparation. They are the creme de la creme in tax preparation knowledge. There's absolutely no way they can screw up your tax return. The exam is very rigorous and the pass rate is very small.Their knowledge of tax preparation is right on par with IRS agents. In fact - if you're ever audited - you want an EA (Enrolled Agent - not a Tax Attorney - to be your representative). The typical CPA, the typical Tax Attorney - will fail the Enrolled Agent exam - because they don't know how to taxes. However, you'll be absolutely fine with a Senior Tax Preparer at H&R Block. :-)
Helpful Answer (2)
Report

Filing taxes for each parent is done on the same kind of tax form as anyone else. My mother's long term care insurance did not pay all of her plans and thus her money was used to pay what it did not cover. Her finances were so complex that I hired a CPA to do her returns which I signed as her Durable POA.

I gather that your mother does not have enough work credits to draw social security.

Given the fact that your parent's debt is half of their assets, I think that you need to find a financial adviser to help with this.

Are you an only child or do you have siblings? If you have siblings, it is time to have a meeting to discuss these things.
Helpful Answer (1)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter