3-trumpPresidential nominee Donald Trump introduced a plan that possibly could be beneficial to elders. One proposal would be to change the tax code to permit a tax deduction (for those who provide for elderly parents) up to average cost of care in the state. Individuals earning greater than $250,000 ($500,000 if filing jointly) would not be eligible for the deduction. However, this would be more beneficial for those with higher income since they would be more likely to itemize and get a larger deduction based on a higher tax rate. The plan was introduced earlier in September in connection with a child care plan.

Dependent Care Savings Accounts (DCSAs) would also be created which would permit a tax deductible contribution (up to $2,000 a year) for elder care or adult dependents.

Additionally, the appreciation in the DCSA would not be taxed. The DCSA would cover services such as long-term care whether it would be in a facility or at home. This is beneficial for high earners to shelter income and use it to pay for the care costs of an elderly parent that the high earner may have paid for anyway.

Presently, only employers can offer a savings account, but it is less tax friendly. Details on how the government would pay for the proposals have not been clarified.

This issue was not addressed at the first presidential debate.

No Comments

Sorry, the comment form is closed at this time.