Tax Relief, or Lack Thereof, for the Long‐Term Care Costs of the Aging Population in America Available to Purchase

ABSTRACT: As the health and longevity of Americans continue to improve, adult children caring for aging parents—possibly at the same time as raising children of their own—is becoming a national phenomenon. This paper examines current and proposed income tax relief for taxpayers who provide financial support for the long‐term care of an adult individual (e.g., parent of taxpayer). Four specific tax relief options are evaluated: dependency exemption, head of household filing status, medical itemized deduction, and dependent care credit. The current tax law is not structured to encompass the unprecedented issue of the long‐term care costs of the aging population in the United States. In response, various options are introduced to advance the discussion of tax policy alternatives.