A valuable tool when adult children are caring for a parent is a Dependent Care Account. If your employer provides you with access to an account, it allows an adult to pay for up to $5,000.00 of dependent care expenses using pre-taxed dollars. If your employer does not allow for a DCA, the government allows for a Dependent Care Tax Credit for the adults own children. A family will receive 20% on up to $3,000.00 of medical expenses for each of their children which would result in $600.00 per year if a family has one child. To claim the tax credit, a family must show that both spouses are employed or full time students and living with the child taking the credit.
