What Every Home Caregiver Should Know About Obtaining Tax Credits

If you are an independent home caregiver then you know the importance of filing your own taxes and using the tax credits available through the government. Though there are a few that you may know about it, there are some that you may overlook. Before you decide to handle your taxes the same way as you have before, consider the things that every home caregiver should know about obtaining tax credits and having them processed properly.

Discuss Your Career

When you use a tax preparing service or an accountant, you likely go in with your paperwork and just have the rest taken care of by them. This can lead to overlooking an important tax credit that your tax preparer may know about, but may not think applies to you because they don't have a solid understanding of what services you provide. Take a moment and schedule a consultation with your tax professional and discuss what it is you do, what you provide, and if you provide any equipment or supplies. A few minutes of explanation may lead to several credits when you file.

Family or Clients

There are several tax credits that may apply to you if you are a certified home health care provider and you are providing those services to a family member. If you have several clients, but you also have family members as clients, let your tax professional know. Your state may have some form of tax break for this that can be applied to your next taxes. Keep in mind, you may have to provide some form of supporting documentation in order to receive the proper credit and have it processed on your next tax year.

Treatments and Services

There are several treatments and services that may receive a break for both you and your client. Treatments that may fall under this include denture and other dental services as well as transportation fees for taking your clients back and forth to their appointment. If you aren't certain if you will receive a business break for these services and other services you provide, contact your tax professional and discuss your options. If possible, break down your services further to determine everything you offer instead of just a general overview of service options.

These are just three of the things every home caregiver should know about tax credit processing. When you have your tax credits worked out with your tax professional, allow them to work through them and process them. They can give you the final outcome, if you owe taxes, and if you have enough credits to break even with your home health business for the year.