Age catches up to everyone, but that is no excuse to not stay on top of financial obligations. Many people ask, What are the financial needs of an elderly person? To maintain their independence, keep their dignity intact, and relieve the strain this burden puts on their relationship with loved ones, there are several needs to consider.
At Marcia L. Campbell CPA, we have helped seniors ensure they are financially secure for decades with premier daily money management services for seniors. Read the second and final installment of our two-blog series to learn more about the financial needs of seniors.
What Are the Financial Needs of an Elderly Person?
Your parents supported you throughout your life. Now it is time to return the favor and make this a fulfilling life chapter for them. From tax credits and deductions to housing expenses and mortgages, here are the financial needs of the elderly.
Related Article: What Are the Financial Needs of an Elderly Person, Pt. I?
Tax Credits and Deductions
What are the financial needs of an elderly person? Well, another financial need is taxes. For both seniors and children managing their elder parents’ finances, understanding deductions and credits is essential.
“As people age, their tax situation changes. Understanding how to make the most of a senior’s taxes to maximize savings can go a long way in affording their care, which can be a relief for both the seniors and their children.” – Marcia L. Campbell, Elder Care Accountant, Marcia L. Campbell CPA
If you are a child taking care of your parents and itemize health care deductions, you could be able to deduct expenses for your parents. A professional fiduciary can help you understand what you can deduct. Key credits and deductions to consider include:
- Health care credits and deductions
- Family and dependent credits
- Income and savings credits and work-related deductions
- Homeowner credits
- Education credits
- Investment-related deductions
- Itemized deductions
- Education deductions
For seniors relying on their nest egg and Social Security, these deductions and credits can be excellent ways to reduce what they owe when filing taxes.
Related Article: Deductions Seniors Filing Their Tax Returns Might Not Know
Housing Expenses and Mortgages
Housing costs are the most important consideration for those who are wondering, What are the financial needs of an elderly person?
Whether your senior loved one needs to pay rent, make mortgage payments, pay for retirement housing, or pay for assisted living, this is a significant expense. These expenses also include utilities, groceries, and other essentials.
Related Article: Everything You Need to Know About Transition Your Elderly Parent’s Finances
Premier Elder Care CPA and Professional Fiduciary Services
So, what are the financial needs of an elderly person? Well, they continue to evolve and grow with age, so there is no simple answer to this question. Your parents have worked hard their entire lives to enjoy this phase of their lives, but failing to stay on top of their finances can derail their golden years. Daily money management services can help in this department to enable your senior loved one to make the most of their retirement.
