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Trevor A. Farrington, LUTCF®, RICP®
Regional Vice President
Financial Advisor
Equitable Advisors, LLC
93 Worcester Street, Suite 103
Wellesley, MA 02481
Phone: 617-407-2684
January/February 2024
The High Cost of Senior Care
Do you care for a senior parent or another loved one? According to The National Alliance for Caregiving (NAC) and AARP, more than 50 million Americans are unpaid caregivers. On average, these caregivers pay 26% of their income and give 24 hours a week to help loved ones—often to their own financial and health detriment.*
Dual Problems
One financial problem many middle-income families face is that their loved one’s income disqualifies them from Medicaid services, and Medicare falls short on coverage for everything the person needs. Another is that caregivers ignore their own finances and jeopardize their continuing financial security. Some exhaust leave and vacation time and have to take unpaid time from work. Others quit working altogether. In addition, they may reduce or even stop retirement plan contributions to pay for their loved one’s care. The second problem is the mental stress and the physical exhaustion of caregiving.Possible Solutions
Tax Breaks — If your loved one lives with you, you may be able to claim them as a dependent on your tax return. Even if you can’t claim them as a dependent, you may be able to deduct the out-of-pocket care expenses you pay for them. To claim the deduction, those expenses, and your medical expenses, much exceed 7.5% of your adjusted gross income, and you must provide more than half your loved one’s support. Talk with your tax advisor.Employer Help — Talk to your employer about programs or benefits it may offer, such as flexible schedules, working from home, family leave programs, and dependent care flexible spending accounts. Each household may contribute up to $5,000 a year in 2024 ($2,500 married filing separately) to a dependent care account to use for the costs of caring for a dependent loved one. Your contribution is free from income tax, Social Security and Medicare taxes, and some states’ income tax.
Other Assistance — If your parent is a veteran, the U.S. Department of Veterans Affairs may help pay for some home health care following hospitalization. For your mental health and well-being, the Family Caregiving Alliance provides a guide to respite services in each state.
* Caregiving in the US, AARP and NAC, 2020, and Caregiving Out-of-Pocket Cost Study, AARP, 2021
GE 5994912.1 (10/23) (10/25)
Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in Ut; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal adviceor services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
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