Have you ever given it much thought as to the cost of looking after a dependent adult? Think about this for a moment….
Let’s use the scenario that it has been decided that your aging parent is going to come and live with your family. The following are some items that can easily eat away at your bank account which can often get shrugged off from the Caregiver or other family members.
- Non-prescription medication (i.e. Asperin/ Cold medicine)
- Gas expense to transport the dependent person to appointments or visits
- Loss of income when the Caregiver has to take days off work to care for the individual
- Increased Grocery Expense
- Increased Utility Expense
I’m sure there are many of you who could add a few things to this list. The point I’m trying to make here is that all of these can add up to a big monthly expense.
I have had Mediations in which other family members (Usually the adult children) complain that the Caregiver (usually a Sibling) is “nickle and Diming” their parent when asking for these out-of-pocket expenses. This can cause a lot of conflict amongst the family especially when the Caregiver or the other family members are not in a financial position to absorb these extra costs.
Our Canadian Government has finally recognized that Caregivers need some financial relief to help them look after those people who are dependent on them by reason or mental or physical infirmity.
The Family Caregiver Tax Credit received Royal Assent (became law) and Caregivers will now receive a tax credit of $2,000 per dependent. The $2,000 will also be indexed for inflation starting in 2013.
Great news for Caregivers and for those who rely on them.
For more information on the Family Caregiver Tax Credit here is the link