Tax Relief for Caregivers: Parent Medical Expenses as Deductible Costs
This act allows medical expenses for parents to be included as qualifying medical expenses for tax purposes. This means individuals caring for their parents can potentially lower their tax burden by utilizing Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs). These changes will take effect after December 31, 2025.
Key points
Medical care expenses for parents can now be counted as eligible medical expenses for HSA, FSA, and HRA accounts.
Individuals providing care for their parents may see a reduction in their taxable income by using these accounts for care costs.
These changes will apply to amounts paid or expenses incurred after December 31, 2025.
Introduced
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