We found this article on MSN Money from Kiplinger’s, it talks about the tax savings you maybe eligible for you to use when it comes time to do your taxes. As Caregivers we need to be able to utilize all the advantages we can get to offset the rising costs of Caregiving which are rising as fast as anything else in our society. It may require you to do a little more investigating, talking with your accountant to see if you can use any of these tax breaks from the IRS to your advantage,but we think it will be well worth the time and  effort to do so.

Link to Original Source:

By Susan B. Garland, Kiplinger’s Personal Finance magazine

Tax breaks for Alzheimer’s?

Caring for someone with dementia can be physically and financially draining. But there may be some ways you can save on taxes.

The cost of caring for someone with Alzheimer’s disease or another chronic illness can be devastating. But you may be able to defray part of the expense by employing certain tax-saving strategies or write-offs. The tax breaks could go to the person with the medical condition or to a family member who assumes the financial burden of care.

Medical deductions could provide valuable relief, for example, if you’re tapping an individual retirement account to cover costs. If you need $20,000 to pay for care, you’ll need to take almost $27,000 from your IRA if you’re in the 25% tax bracket, so you can cover the federal tax bill, too. (State taxes could force an even bigger withdrawal.) But tax write-offs could limit the damage. “You’re still bleeding cash,” but at least you reduce your taxes, says Ben Neiburger, an elder-law attorney at Generation Law, in Elmhurst, Ill.

Deductions in 2012 are allowed for medical expenses that exceed 7.5% of your adjusted gross income. The threshold rises to 10% in 2013 for most taxpayers. However, for 2013 to 2016, the 7.5% threshold applies if either spouse turns 65 by the end of the year. A wide range of services associated with the diagnosis and treatment of Alzheimer’s disease and other conditions count toward the threshold, including long-term-care insurance premiums, drugs, hospital care and physician services. (For an extensive list of eligible expenses, see IRS Publication 502, Medical and Dental Expenses, at the IRS website.)

But many caregiver-related expenses are not automatically considered deductible medical expenses. For long-term-care services — such as nursing homes, assisted living, adult day care, in-home care and respite care — and personal-care services — such as house cleaning — to qualify, a licensed health care professional must certify an individual as “chronically ill” and prescribe the services under a plan of care. A person is chronically ill if he or she needs supervision as a result of severe cognitive impairment or needs help to perform at least two activities of daily living, such as eating and dressing.

http://www.irs.gov/uac/Publication-502,-Medical-and-Dental-Expenses-1

If you hire a caregiver on your own and pay $1,800 or more in wages, you have to pay Social Security and Medicare taxes for your employee. Your share is 7.65% of wages. You must withhold the employee’s share of 5.65%, or you can pay it from your own funds. You’ll also owe federal unemployment tax of 6% on the first $7,000 in wages, although you may be eligible for a tax credit to offset part of the tax. You could owe state unemployment tax, as well — see IRS Publication 926, Household Employer’s Tax Guide.

Tax breaks for adult caregivers

Caregivers who are adult children or other relatives other than a spouse also can claim breaks for expenses incurred in caring for someone with a chronic condition. To do so, however, the caregiver must be able to claim the individual as a dependent.

To be eligible, the caregiver — say, the adult child — must provide more than half of the parent’s total support for the year. Support could include expenses for medical treatment, food and transportation. A relative could be living in a nursing home or an assisted-living facility. Plus, the ill person’s gross income must be less than $3,800 in 2012 ($3,900 in 2013), not including Social Security and tax-free disability payments.

If your relative passes these tests, you can claim a dependent exemption, worth $3,800 for 2012. You also can deduct medical expenses for the parent’s care and be eligible for a dependent-care tax credit. In the case of deducting a dependent parent’s medical expenses, the parent’s income can exceed the $3,800 gross income limit.

You may be able to use your employer-based flexible spending account, which allows you to pay for out-of-pocket dependent care or medical expenses with pretax dollars. In 2013, you can designate up to $2,500 to a spending account. Rules vary by employer.

However, claiming your parent as a dependent in order to secure tax breaks may not be the right move. If a parent can afford nursing-home care, for example, there may be no reason to fork over the money simply to claim a medical write-off.

Also, if your parents need nursing-home or assisted-living care but can’t pay for it, they will likely qualify for Medicaid. “A thorough analysis of the family’s income and assets should be performed to determine the best option for paying for long-term care,” says Phillip Sanders, a certified public accountant and the chief executive officer of ElderCare Matters, an online directory of elder-care experts. At that point, he says, an adult child can decide whether to pay the expenses (and claim the deduction) or have the parents spend down their resources to qualify for Medicaid.

Were you one of the lucky ones who went home for the holidays, maybe it had been a while since you had been home or seen your family in person? It is great to see all of your family again especially if it has been some time since you were together in one place sharing a Thanksgiving or Christmas dinner, opening presents, seeing nieces and nephews and now they have grown from the last time you saw them. So much to catch up on.

And came then the shocker. It had been a while since you saw your mom, dad, your grandfather or grandmother in person and you just could not believe what you were seeing, and hearing, just how much of a digression there was in their health, their talking ability, or their mobility. Maybe even the big one hit you, they could not remember your name, or they did not know who you are.  We cannot imagine anything more depressing than this.

This, my friends happens to a whole lot of families and single people, especially around the holidays. Maybe you had heard how bad it was getting from a sister, a brother, or maybe a neighbor who still lives close enough to see the decline and tell you about it, but you just could not or did not want to believe it, and now you just can not deny it, after what you just saw and heard. This one thought is so depressing that you just wanted to sit down and cry. You have been slapped in the face with a big dose of reality.

Now that the holidays are almost over, you know you need to sit down and have that family conversation about what to do with what you just witnessed, from the loved one you just saw. There are a million things, and a million questions running around in your head right now. What are we going to do? How are we going to manage? What can we do? And the most important question of all, how do we talk to our loved one about this?

 First off, slow down and think about this. We want you to know that you are not alone, you are not the first family that this is happened to and you will certainly not be the last. 5.4 million people in this country are currently dealing with this, and the numbers are only going to get higher. There is help out there, but there needs to be some education on your family’s part., there needs a plan of action. But, where to start? We’ll get to that.

 I am not going to kid you or sugar coat it, it is not going to be easy, there are going to be changes in your life, there is going to be a lot of work on the part of the whole family. This should not be left up to one person if at all possible, if there are brothers and sisters, you need to get them involved. Of course, if you are an only child, you need to know about all the help that outside agencies and organizations can provide that are available to you. Use them! These are people who do this as their life’s work, they know from experience. It is not hard to get the help you need; it should not be hard to ask for it. So do not be ashamed or think that you are weak because you can’t handle this yourself or don’t know where to turn. We’ll help you with all of this. That is our life’s work.

 By the way, you have just added a new title to your resume. You have now joined an exclusive club, a club in which there are over 16 million members. You are now a Caregiver. Do not be afraid of this title; be proud of the fact that you have joined this club. This is the club that tells the world that we are human, we care about our loved one’s, that we will do whatever needs to be done in order to take care of our loved ones, with the amount of care and dignity that they deserve. Wear this new title proudly, no one is ever going to berate you, ostracize you or look down upon you because you are now a Caregiver. Without people like you the world would be one pretty bleak place. It says a lot about a society how we treat and take care of our elderly. Most of us are caring and compassionate people. We just do not let our family drift away and make it someone else’s problem; we take our responsibilities seriously, and take care of our own.

So far, we have managed to say all this without using the one word none of us want to hear or use, but we all know we need to worry about.

Alzheimer’s

 This one word puts the fear of God into all of us, When we come to the reality that one of our loved one’s has been diagnosis with this misfortune disease.

Years ago, there was not nearly the number of resources you could turn to for help that there is today. Today there is a whole host of organizations that can help. Help in answering those tough questions that we all have.

The very first place we would like you to turn is the Alzheimer’s Research Association. We are dedicated to the Caregivers of Alzheimer’s patients. We make it our mission to help in any way we can from answering your questions, supporting you in any way we can, whether that be the information you need, or products and services you need in order to help you do this job we call Caregiving. You can start by looking at our website at www.alzra.org. If you cannot find the answer you are looking for there, please feel free to contact us and we will be happy to help.

Please remember that we are here to help, do not be afraid to ask any question you need answered, the only dumb question is the one that is not asked.

Joe Lucido

Director

Alzheimer’s Research Association

www.alzra.org

joe@alzra.org

866-274-8148

Arlington police issue Silver Alert for missing senior

Credit: Arlington PD

Arlington police provided this identification photo of 82-year-old Maria Arrocha.

Posted on December 18, 2012 at 7:27 PM

Arrocha, 82, was last seen on foot in the 1800 block of Arbor Lane in Arlington at 9 o’clock Tuesday morning. Investigators are concerned about her welfare because Arrocha suffers from Alzheimer’s disease.

She was last ween wearing a black sweater and beige pants with no shoes. She is described as 5′-5″ tall, 180 lbs. with black/gray hair and brown eyes.

Call the Arlington Police Department at 817-459-5600 or your local police agency if you have any information about Maria Arrocha.

This Article came to us through Sciencedaily.com Click Here for original Article

Improved Techniques May Help Recovery and Prevent Incidents of Missing Drivers With Dementia

Dec. 14, 2012 — A new study focusing on how people with dementia become lost while driving, how missing drivers are found, and the role of public notification systems like Silver Alert in these discoveries suggests techniques that may help recover drivers with dementia and prevent potentially harmful incidents.

The study was led by principal investigator Meredeth A. Rowe, RN, PhD, FGSA, FAAN, professor and endowed chair at the University of South Florida College of Nursing. The findings were published online last month in the Journal of the American Geriatrics Society: Missing Drivers with Dementia: Antecedents and Recovery.

Based on the study results, the research team reported several recommendations to help guide local policies and training for Silver Alert-type programs that broadcast information about missing seniors with Alzheimer’s disease, dementia or other cognitive deficits, including:

- Rapid, direct notification of law enforcement agencies as well as equipping officers a mechanism for quickly assessing the cognitive status of drivers is critical. Law enforcement officers are more likely than citizens or family members to discover missing drivers with dementia.

- More detailed information about a missing individual, not just a description of the car being driven, may better assist law enforcement officers and citizens in rescuing lost drivers who have left their vehicles to wander on foot.

- State and federal agencies planning a Silver Alert program need to develop policies and procedures that recognize the distinct differences between those missing while driving and those lost while walking.

- Retirement from driving is the only preventive option when individuals can no longer safely operate a motor vehicle because dementia interferes with their ability to retain and use new information.

“With the baby-boomer generation getting older, the number of the people living with Alzheimer’s disease is on the rise,” Dr. Rowe said. “Most Americans depend on driving their own car to meet their transportation needs, even for the most basic needs such as food. It will be critical to identify other means of transportation for people with dementia (PWD) to facilitate driving retirement. This strategy will be the most effective intervention to reduce and prevent incidents of missing PWDs. Strategies commonly recommended, such a hiding the car keys, are potentially protective only in a small number of cases.”

According to Alzheimer’s Association, 5.4 million Americans live with Alzheimer’s disease, including 800,000 who live alone. One in eight older Americans lives with the memory-robbing disease, including 450,000 Floridians age 65 or older. These statistics highlight the need to find more effective ways to search for missing drivers with dementia and reduce missing incidents.

Dr. Rowe and her colleagues analyzed 156 records from the Florida Silver Alert program for October 2008 through May 2010. These alerts are issued on digital highway signs and news broadcasts in Florida to assist law enforcement officials and the general public in identifying and safely returning cognitively impaired drivers.

The researchers found that most missing drivers were men, ages 58 to 94, who were cared for by a spouse. Most got lost on routine, caregiver-sanctioned trips to usual locations. Only 15 percent were found while driving, with most discovered in or near a parked car — and law enforcement officers recovered the large majority of drivers with dementia.

In addition, only 40 percent were found in the county where they were reported missing, and 10 percent were found in a different state. Another 15 percent were found in dangerous situations such as stopped on railroad tracks. There was a 5 percent mortality rate in the study population, with those living alone more likely to be found dead than alive.

“While some PWDs may continue to drive safely, it is imperative that we identify individuals who will get lost, determine predictors of modifiable outcomes, and establish policies that will improve location of those individuals who get lost,” said study co-author James E. Galvin, MD, MPH, professor of neurology and psychiatry New York University Langone Medical Center.

A comprehensive Silver Alert program that includes law enforcement and community education as well as rapid alerts is critical to finding missing drivers, the researchers conclude. Their findings led to recommendations for an additional study on how notifications be more effectively delivered to facilitate increased recoveries from “Good Samaritan” citizens.

The researchers emphasize that getting cognitively impaired people to retire from driving may be the single most effective measure for prevent missing incidents that may lead to injury or death.

“Important aspects of successful driving retirement include a partnership between the healthcare practitioner and caregiver to support the decision for driving retirement, the identification of

local and state programs… and assistance in finding alternative forms of transportation in the community,” they report.

December 2, 2012

(RALEIGH, NC) — 12/1/12 11:44 PM — The North Carolina Center for Missing Persons has issued a Silver Alert for a missing endangered man, David Melo Barreira.

Citizens are asked to be on the lookout for David Melo Barreira, who is believed to be suffering from dementia or some other cognitive impairment.

Anyone with information about David Melo Barreira should call Sgt. Pennica at the Durham Police Department at 919-560-4600.

Gender: Male
Age: 40
Race: White
Height: 5′ 7″
Weight: 225 pounds
Hair Color: Black

Hair Length: Short
Eye Color: Brown

Clothing Description:  Subject was last seen wearing gray pullover, blue jeans and white nike shoes. Subject was last seen wearing a black hat.

Reporting Law Enforcement Agency: Durham Police Department

Contact Information: Sgt. Pennica at 919-560-4600

Location Last Seen: 4 Kimbrough Court, Durham, NC

Direction of Travel:
Unkown

Possible Destination:
Unkown

BLUE SPRINGS, MO (KCTV) -

Authorities say a missing Blue Springs man has been found safe.

Police had issued an endangered Silver Alert for the missing 68-year-old Blue Springs man.

Gerald V. Smith has been missing since Saturday afternoon.  He suffers from dementia, police say.

Police did not say where he was found, but he apparently was OK.

Police responded to Smith’s home about 4:30 p.m. to conduct a health and welfare check and found the front door to the home open.  Smith was nowhere to be found, and his 2005 Ford Roush Mustang with a white and black stripe was also missing.

Smith is described to be 6″1′ tall, 180 pounds with gray hair, blue eyes, and light complexion, His clothing description and licence plate information is unknown at this time.

If anyone has seen Smith, his vehicle, or anyone having any information related to the endangered missing person, they should immediately dial 911 or call the Blue Springs Police Department at 816-228-0150.

Caregivers You Need to Reevaluate Your Health Insurance Coverage

Just like any company or organization would, every year the people who run these entities look at the expenses that it has Vs. the revenues it takes in and makes changes to make sure the entity is a viable concern. The ones in charge are there to make sure that these companies and organizations can stay afloat financially. It is their jobs and duties to do so, and make the necessary changes to its operations to accomplish these goals.

Why do I tell you this?

Because this year a new reality has set in, with a huge new and unforeseen expense that has changed so much that we don’t really see how some companies and organizations are going to be able to stay in business and offer the benefits that they once did for their employees.

The Alzheimer’s Research Association is just one of many companies that need to deal with this huge new expense, and we are looking at ways to be able to pay for the extra expense and still be a viable company.

As the end of the year is fast approaching, we were in the process of looking for ways to keep our expenses down when all of the sudden out of the blue we were hit with this new reality of the new “Affordable Care Act”. You know the health care fight that went on a few years ago, the one that was supposed to keep the costs of health insurance down, and give health insurance to those who could not afford it?

Well the new reality is the premiums for our health insurance coverage has almost doubled for the same plan that we currently have for everyone here at the (ARA). So as soon as the New Year comes along, we will have this huge new unexpected expense to pay for what was supposed to be a new cost control law that was to keep everyone insured.

Why do we tell you this? You might ask yourself, that is your problem you may be saying, and you would be right.

 But as an organization that sees itself as an advocate for the Caregivers to Alzheimer’s patients, we also see it as our duty to give you information that just may affect you and your abilities to give the kind of care you would like to give to your patients. You see, this not only affects companies and organizations like ours, it affect individuals as well. We are all in this together, the insurance companies do not care if you are a company or an individual, they are getting their increases in and cutting coverage before this whole new “Affordable Care Act” goes into affect fully in 2014. and they are not shy about what they are doing. The rise in premiums and the cutting of coverage is just astonishing, and a very bold and inhumane move on the part of the Health Insurance companies.

Just like we here at the (ARA) are doing, and so many other companies are doing, you need to look into the kind of Health Insurance plan you have and make sure it is what you think it is, and it is at what cost you think it is. You just might get the surprise of your life. Everyone we talk with is getting an increase in premiums or a cut in coverage, and in some cases both. This is happening to both companies and individual private Health Insurance plans.

Caregivers have enough to worry about, and we know you do not need another reason to worry, but we think it is so important that you look into what kind of Health Insurance plan you have and make sure it is what you think it is.

We are not sitting here crying about the increase in our Health Insurance plan and asking for anything from our membership. What we are doing here is trying to inform you that there is a great need for you to stay informed and making sure you address this most important issue and need.

The kinds of increase we are talking about are life changes events. In some cases it means the difference between eating and, or being able to afford your medications.

Please look into what you have in Health Insurance coverage; you do not want to be surprised when the bill comes due.

Joe Lucido

Director

Alzheimer’s Research Association