I've been taking care of my mother that is blind and disabled for the past six years after the death of her mom my grandmother. There was a trust which I'm the successor of trustee of, however having to take care of my mother financially there isn't anything left from that trust. Having to sell two homes within six years because i couldn't afford the mortgage payments and anything i earn is all but gone. I pay for her 24/7 caregiving, rent on her home, bills, and more. Is there anything i can do that i may be able to get some return from any of this?
I've already tried...
This is just part of what i do and have been through regarding my mother. After my grandmother passed i was surprised to find out that a so called friend of my mother married her in a "concealed marriage" just three months prior to my grandmothers passing. This man used to take my mother out to eat, doctor visits sometimes and small things like this, always with the aid of a caregiver as instructed by myself due to the fact i felt he was incapable to take care of my mom 100%
Anyway i soon there after took the matter to court because all of a sudden this man was trying to take what little SSI payments my mom receives and make it known that what is hers is now his as well. After six long months in and out of court i was awarded to be her Conservator. It cost me fifteen thousand dollars in lawyer fees not to mention taking my time away from the carpentry business i owned and ran.
The story can go on but i really don't feel like writing as much as anyone would even be interested in any of this. I just need help and not knowing if it's too late to do anything about all my losses over the simple fact i just want my mom to have some sort of a comfortable life even though a surgery gone bad has left her blind disabled and miserable because she can't do what she used to. I could've put her into a home a long time ago but i have a heart and would give anything i've got to put a smile on her face. Problem is i don't have much time left before i have no money...... then what?
Answers
Steven B.
Thank you for your insights. I have yet other problems - I haven't filed taxes in years. I work for myself, carpentry and construction. Although i have saved receipts for everything over the past five years. Do i have any way to make light of all this? What can i do to get ahead of all this?
Expert
If you have conservatorship over your mother, you should be able to claim her as a dependent on your tax return if she meets the rules for qualifying relative- the gross income, and support test. It sounds like you do pay over half her support. If her income is only the SSI she should meet the gross income test. See rules for qualifying relatives in publication 501 link below. If she is claimed as a dependent you would be able to claim medical expenses for her if the combined medical expenses on your return is over 7.5% of your income. The 24/7 caregiving may qualify as a medical expense depending on whether it's nursing care or not. As mentioned before you probably qualify as Head of Household status as well, if you are not filing a joint return or other status that would pre-empt HOH. Here's the link to IRS pulication 501: http://www.irs.gov/pub/irs-pdf/p501.pdf.
See page 7 and 16 for Head of Household and Qualifying relative rules, respectively. Page 8 has rules for Head of Household exception for parents who don't live with their children- meaning you can still claim HOH status if she doesn't live with you.
You may also want to look at publication 503 for dependent care expenses if you are paying a caregiver for your mother. these expenses have to be work- related however (paying these expenses has to allow you to work or seek work). http://www.irs.gov/pub/irs-pdf/p503.pdf
I would like to mention that you generally cannot claim a married person as a dependent if he or she files a joint return. This test does not apply if a joint return is filed by a dependent only to claim a refund and no tax liability exists for either spouse, even if they filed separate returns. However, I believe that since you have a conservatorship over you mother you would be able to claim her and her husband shouldn't be able to file a joint return with her,
The lawyer fees would not be deductible.
Hope this helps.
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It will take some work, but getting up to date with the IRS can be accomplished. You should start as soon as you can to protect yourself (waiting will only make things worse) and also since IRS penalties and interest will continue to add on to any amounts that you owe them. If there are refunds due you, they will expire, for instance a refund from a 2006 tax return cannot be claimed after April 15, 2010. If all your income is from self-employment, you may not be entitled to any refunds and may owe them money depending on your particular situation - if you have a net gain after all your deductions and you haven't paid the IRS any estimated taxes each year .
Basically you have to gather all your data and organize it for each year. It is good that you saved your receipts- you need to continue to save them fro 4-7 years after you file. It is best to start the returns in order, oldest first unless there might be a refund due for a recent year(2006 or later) that may expire. You will not know if a refund is due you until you file, but a refund would only be due you if you paid in any taxes or were due a credit such as the earned income credit, which becomes substantial when you have a qualifying child. Here are some links to articles about filing back taxes. They explain things like obtaining transcripts from the IRS for missing tax documents -1099's and w-2's, filing strategies,etc.
http://taxes.about.com/od/taxtrouble/a/back_taxes.htm
This is an older article, but appropriate:
http://taxes.about.com/b/2005/02/17/filing-back-taxes.htm
If you end up owing a lot of money to the IRS, there is the possibility of an installment agreement or an offer in compromise.
If you can afford the services of a professional that may be something to consider as organizing years of receipts for income and deductions may seem monumental to you, but tax professionals are used to this sort of thing and can also help you deal with the IRS.
I encourage you to begin the process of getting your taxes in order as soon as possible. Good luck.
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