Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 6337

Personal Investments • I think my Mom, recently widowed, is looking at a tax bomb

$
0
0

Mom is currently disabled and, soon, will likely require long-term / end-of-life care beyond what I can provide (assisted living / nursing home). This is likely sometime between the next 1 to 5 years. Dad was not just her husband, but also her long-term care nurse.
It's possible she'll be eligible for medical expense deductions if she needs assistance with 2 or more activities of daily living. ADLs.

My FIL had 6 figures of medical expense deductions for several years. The money to pay those huge costs was taken from an IRA (seen as ordinary income) and then those expenses were promptly deducted on his Form 1040 which reduced his income dramatically. He wound up in a low tax bracket.

More details here: https://www.irs.gov/taxtopics/tc502
and here: https://www.elderlawanswers.com/tax-ded ... costs-7184

Regards,
Totally agree. If mom is going to be that ill, get a letter from a med provider that specifically says she needs assistance with the daily living things such as bathing, clothing, toileting, etc. I think you will find that the med expenses will far offset most income. In my mother's case, we're spending
$85K a year...and it is going up again soon.

Danged sorry to read about mom and early demise of father. So sorry.

Statistics: Posted by HipCoyote — Wed Mar 27, 2024 12:07 am — Replies 19 — Views 2713



Viewing all articles
Browse latest Browse all 6337

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>