Stressed About Aging Parent Care Costs? Here’s How Tax Breaks Can Help

May 6, 2024

Michael Landsberg, CIO, Landsberg Bennett Private Wealth Management

Caring for aging parents is a reality faced by millions of Americans, blending deep affection with substantial challenges. Balancing work, family life, and the evolving needs of a loved one can be emotionally draining. The crux of elder care often falls on the family: finding the means to provide appropriate care.

The financial burden of elder care can be significant. Monthly costs for assisted living facilities typically range from several thousand dollars to over $10,000, varying by location and the level of care required. In-home care services offer flexibility but can also be costly. Additionally, medical expenses for seniors tend to increase, which can easily strain a family’s budget.

Beyond the emotional strain of caregiving, the financial pressure can be overwhelming, potentially leading to difficult decisions about delaying retirement, reducing savings, or incurring debt.

Fortunately, families are not alone in this struggle. The Internal Revenue Service (IRS) offers various tax breaks and benefits specifically designed to assist those caring for dependents, including aging parents.

These tax breaks can alleviate some of the financial burdens associated with elder care. They provide valuable relief during challenging times, potentially translating into tax savings ranging from a few hundred to several thousand dollars, depending on individual circumstances and the level of care needed.

In this article, we will explore the tax breaks available for managing the cost of caring for your aging parent. We’ll explain eligibility requirements, potential benefits, and how to claim these deductions and credits on your tax return.

Additionally, we will discuss the role of a fiduciary financial advisor, who can be instrumental in helping to ensure you maximize the tax benefits available and customized for your specific situation.

Claiming Your Parent as a Dependent: Understanding the Eligibility

A significant portion of tax breaks for those caring for aging parents hinges on whether you can claim your parent as a dependent on your tax return. The IRS provides clear guidelines to determine eligibility, making the process manageable. Here’s a breakdown of the key requirements:

• Citizenship Status: Your parent must be a U.S. citizen, resident alien, or a resident of Canada or Mexico.
• Filing Status: Your parent must not be married or, if married, must not file a joint tax return.
• Residency: Ideally, your parent should live with you for more than half of the year. However, if your parent qualifies as a “qualifying relative” (which includes blood relatives, stepparents, or in-laws), the residency requirement may be more flexible.
• Income Limits: The total income of your parent(s) must be less than $4,700 for 2023 and $5,050 for 2024.  Only part of your parent’s Social Security benefits might be considered in this income calculation, depending on interest and other income.  Read up and be informed..
• Financial Support: To claim your parent as a dependent, you must provide more than half of their total support for the year. This support includes expenses for food, shelter, clothing, medical care, and other necessities.

Understanding these requirements is crucial, but tax codes can be complex. For comprehensive guidance on claiming a dependent, consult IRS Publication 501, “Dependents, Standard Deduction, and Filing Information.” Additionally, the IRS offers an online tool, “Whom May I Claim as a Dependent?” to help you determine eligibility during the filing process

Tax Breaks for Supporting Your Aging Parents

Caring for an aging parent can present significant financial challenges. Fortunately, the U.S. tax code provides several options to help ease these costs. These tax breaks may include credits that directly reduce the amount of tax you owe, as well as deductions that lower your taxable income.

Below are some of the most relevant tax breaks that can help relieve the financial pressure associated with supporting an aging parent.

The Child and Dependent Care Credit for Elder Care

The Child and Dependent Care Credit (CDCC) might seem like it only applies to childcare, but it also offers valuable benefits for families caring for aging parents. In certain situations, the CDCC can help offset the costs of elder care. So, how does it work, and how can it benefit you? Read below to learn more.

Eligibility for the CDCC and Elder Care

To qualify for the CDCC when caring for an elderly parent, the key factor is whether your parent needs care. Here are the criteria they must meet:

• Inability to Care for Themselves: Your parent must have a condition that makes it difficult for them to care for themselves. This includes needing help with daily activities like bathing, dressing, eating, toileting, and moving around (e.g., getting out of bed or a chair).
• Living Arrangements: There are two main scenarios to consider:
  • Living With You: Your parent should live with you for at least part of the year. This shows that you are their caregiver and that your household is their primary residence.
  • Exceptions for Qualifying Relatives: Even if your parent lives elsewhere, you may still qualify if they are considered a “qualifying relative.” This includes blood relatives, in-laws, or stepparents.

The CDCC can provide meaningful financial relief, making it easier to manage the costs of elder care. Understanding the eligibility requirements can help you make the most of this tax credit.

Credit Details and Limitations

The Child and Dependent Care Credit (CDCC) is based on a percentage of your eligible care expenses, with a maximum limit on the amount you can claim. Here are the key details:

• Credit Percentage: The percentage of the credit you receive depends on your Adjusted Gross Income (AGI). Generally, the lower your AGI, the higher the credit percentage, ranging from 20% to 35%.
• Credit Limit: There is a cap on the maximum amount of eligible expenses you can claim. For 2023, the limit is $8,000 for one qualifying dependent (such as a parent) and $16,000 for two or more qualifying dependents.
• Taxable Income Impact: The CDCC directly reduces the amount of income tax you owe. It works as a dollar-for-dollar reduction of your tax liability.

Example: Using the Child and Dependent Care Credit for Elder Care

Let’s consider a situation where you pay $4,000 per month for a home care service to assist your aging parent with daily activities like bathing, dressing, and managing medication. Over the course of the year, these expenses total $48,000. However, the CDCC has a limit, and you can only claim up to $8,000 in qualified expenses for one dependent.

Here’s how the CDCC could benefit you:

• Eligible Expenses: Since your parent requires help with daily living activities, the $48,000 you spent on caregiving would likely qualify for the CDCC.
• Credit Calculation: If your Adjusted Gross Income (AGI) places you in the 35% credit range, you could receive 35% of the $8,000 limit. This would result in a credit of $2,800.
• Tax Impact: The $2,800 credit directly reduces the amount of income tax you owe by $2,800. This reduction can either lower your tax bill or increase your tax refund.

While this example simplifies the process, it highlights the importance of consulting a tax professional to determine your eligibility and the best way to claim the CDCC for your situation.

Learn more about The Child and Dependent Care Credit for Elder Care here: Child and Dependent Care Credit Information

Flexible Spending Accounts (FSAs) for Elder Care Costs

Caring for elderly parents can be financially challenging, with multiple expenses to manage. Flexible Spending Accounts (FSAs) offer a tax-advantaged way to help cover these costs, providing some much-needed financial relief.

Understanding Dependent Care FSAs

A Dependent Care FSA is an employer-sponsored benefit that lets you set aside pre-tax dollars from your paycheck to pay for eligible care expenses.

This means that the money you contribute to your FSA is deducted from your income before taxes are calculated, effectively lowering your taxable income.

In other words, you’re setting aside money in advance to receive a discount on certain caregiving expenses.

Dependent Care FSAs and Elder Care

One of the key benefits of Dependent Care FSAs is their flexibility in covering a wide range of elder care expenses, provided certain eligibility criteria are met.

• Qualifying Dependent: To use a Dependent Care FSA for elder care expenses, your parent must be considered a qualifying dependent according to IRS guidelines. As we discussed earlier in the context of the Child and Dependent Care Credit, this generally means:

• Filing Status: Your parent cannot be married and filing a joint tax return with someone else.
• Income Limits: Your parent’s income must fall below the IRS threshold, which typically means they have limited income from sources like pensions or investments.
• Financial Support: You must provide more than half of your parent’s financial support during the year, which includes paying for their care, housing, and other living expenses.

Meeting these requirements is crucial for ensuring that your contributions to a Dependent Care FSA can be used for your parent’s care without any issues.

• Need for Care: Similar to the Child and Dependent Care Credit, your parent must have a documented need for assistance with Activities of Daily Living (ADLs) due to a chronic condition. ADLs include basic self-care tasks such as bathing, dressing, eating, toileting, and mobility. If your parent’s condition makes it difficult for them to perform these activities independently, they would likely qualify for coverage under a Dependent Care FSA.

Benefits of Using a Dependent Care FSA for Elder Care

• Reduced Taxable Income: One of the most significant advantages of a Dependent Care FSA is the ability to use pre-tax dollars to pay for care expenses. By contributing to the FSA before taxes are deducted from your paycheck, you effectively reduce your taxable income.

This reduction can lead to substantial tax savings, especially for individuals in higher tax brackets.

Lowering your taxable income not only decreases the amount you owe in federal taxes but can also reduce your liability for Social Security and Medicare taxes, as well as state income taxes in many cases.

• Eligible Expenses: A Dependent Care FSA covers a variety of elder care services, making it a versatile tool for managing the costs associated with caring for an aging parent. Eligible expenses include:

• Adult Daycare Services: Fees for adult daycare centers where your parent receives care and social interaction during the day.
  • In-Home Care Services: Payments to caregivers who provide assistance with daily activities in your parent’s home.
  • Personal Care Assistance: Costs related to helping your parent with bathing, dressing, grooming, and other personal hygiene needs.
  • Transportation to Medical Appointments: Expenses for getting your parent to and from doctor visits or other necessary appointments.
  • Non-Medical Companionship Services: Fees for services that offer companionship and supervision to your parent, ensuring their safety and well-being.
• Triple Tax Advantage: Dependent Care FSAs come with what is often referred to as a “triple tax advantage,” which makes them particularly valuable:
• Pre-Tax Contributions: Contributions to the FSA are made with pre-tax dollars, reducing your overall taxable income.
• Tax-Free Growth: The funds in your FSA grow on a tax-free basis throughout the year. You don’t pay any taxes on the amount you set aside in the FSA as it accumulates.
• Tax-Free Withdrawals: Withdrawals from the FSA are also tax-free, provided they are used for qualified elder care expenses. This means you can use the full value of the funds to pay for care without worrying about additional tax liabilities.

This triple tax advantage not only helps you manage the immediate costs of elder care more efficiently but also maximizes your financial resources, allowing you to provide better care for your parent while keeping more money in your pocket.

Contribution Limits and Considerations

When using a Dependent Care FSA to cover elder care expenses, it’s important to be aware of the annual contribution limits and plan your contributions accordingly.

For 2023, the maximum amount you can contribute to a Dependent Care FSA is:

• $5,000 if you are married and filing jointly.
• $2,500 if you are single or married and filing separately.

These limits apply to the total amount of pre-tax dollars you can set aside each year, and they are important to consider when budgeting for your parent’s care.

Important Note

While Dependent Care FSAs offer substantial tax benefits, there are a few critical considerations to keep in mind:

• Use-It-Or-Lose-It Rule: One of the most significant aspects of a Dependent Care FSA is the “use-it-or-lose-it” rule. Unlike the Child and Dependent Care Credit, any funds you don’t use by the end of the plan year may be forfeited. Some employers offer a grace period or allow you to carry over a small amount of unused funds, but this varies by plan. Therefore, it’s crucial to estimate your elder care expenses carefully at the beginning of the year to avoid over-contributing. Overestimating your needs could result in losing unused funds, which diminishes the tax savings you intended to achieve.
• Accurate Planning: Given the potential for forfeiture, accurate planning is key. Take time to assess the care your parent is likely to need throughout the year, considering factors like ongoing home care services, adult daycare costs, and other predictable expenses. If your parent’s care needs are uncertain or subject to change, it might be wise to contribute a conservative amount that you’re confident will be used.
• Coordination with Other Benefits: If you’re also planning to use the Child and Dependent Care Credit or other tax-advantaged accounts, you’ll need to coordinate these benefits carefully. You cannot claim the same expenses under both the Dependent Care FSA and the CDCC, so understanding which option offers the greater financial benefit is essential. In some cases, it may be advantageous to use a combination of both, depending on your overall tax situation.
• Consulting a Tax Advisor: Navigating the rules around Dependent Care FSAs and other tax benefits can be complex, especially when dealing with elder care. Consulting with a tax advisor is highly recommended to help ensure you’re maximizing the benefits of your Dependent Care FSA while staying compliant with tax regulations. A tax professional can help you determine the ideal contribution amount, advise on the most tax-efficient way to use your FSA, and help you integrate this strategy with other tax-saving opportunities.

Credit for Children and Other Dependents for Elder Care

Understanding tax breaks can be overwhelming, but exploring the benefits of the Credit for Children and Other Dependents can be highly valuable, especially for families caring for aging parents. Despite its name, this credit isn’t limited to child dependents—there’s good news for those supporting elderly family members as well.

A Lifeline for Elder Care Costs

The Credit for Children and Other Dependents offers a tax credit of $500 for each qualifying dependent you claim on your tax return. This credit is particularly helpful for families who are responsible for the care of dependent parents who may not qualify for the Child and Dependent Care Credit (CDCC).

Eligibility for the Credit for Other Dependents and Elder Care

To be eligible for this credit, your parent must meet the IRS criteria to be considered your qualifying dependent. As mentioned earlier, this typically involves:

• Marital Status: Your parent generally cannot be married and filing jointly with someone else, unless they are filing only to claim a refund and no tax liability exists.
• Income Limitations: Your parent’s gross income must be below a certain threshold, which is relatively low (excluding Social Security benefits in most cases). This income threshold helps ensures that the credit is aimed at those truly in need of financial support.
• Financial Support: You must provide more than half of your parent’s financial support during the year. This includes costs associated with housing, food, medical care, and other essential living expenses. Documentation and careful record-keeping are key here to substantiate your claim.

Age Requirement

One of the significant advantages of the Credit for Other Dependents over the Child and Dependent Care Credit (CDCC) is that there is no age limit for the qualifying dependent. This means you can claim the credit regardless of your parent’s age, making it a valuable option for adult children who are responsible for the care of elderly parents.

This flexibility allows you to receive some tax relief even if your parent is well into their senior years, provided they meet the other eligibility requirements. It’s an important consideration for families managing the ongoing costs of elder care.

Credit Details and Potential Benefits

The Credit for Other Dependents offers a straightforward and valuable way to reduce your tax burden when caring for an aging parent. While it operates differently from the Child and Dependent Care Credit (CDCC), its benefits can still be significant.

Here’s a closer look at how this credit works and the potential advantages it offers:

• Flat Credit Amount: The Credit for Other Dependents provides a flat dollar amount for each qualifying dependent, as determined by the IRS. For 2023, this credit is set at $500 per qualifying dependent. Unlike the CDCC, which is based on a percentage of your caregiving expenses, this credit offers a fixed amount that can be easily calculated and applied to your tax return.

This simplicity can be a major advantage, especially for taxpayers who prefer a straightforward approach without the need to track specific caregiving expenses throughout the year. The flat credit ensures that you receive a set benefit as long as your parent qualifies as a dependent, regardless of the specific costs involved in their care.

• Taxable Income Impact: Similar to other tax credits, the Credit for Other Dependents reduces your tax liability on a dollar-for-dollar basis. This means the full amount of the credit is subtracted directly from the total taxes you owe, rather than merely reducing your taxable income. For example, if you owe $3,000 in taxes and claim the $500 credit for a dependent parent, your tax bill is reduced to $2,500.

Example: Leveraging the Credit for Other Dependents for Elder Care

Imagine you pay $3,000 annually for adult daycare services for your aging parent, who is your dependent. Although these expenses do not qualify for the Child and Dependent Care Credit (CDCC) because your parent does not require assistance with Activities of Daily Living (ADLs) in your home, they still qualify as dependent care support under the Credit for Other Dependents.

 Some benefits may include the following:

• Eligibility: Your parent meets the IRS criteria as a qualifying dependent, meaning you can claim them on your tax return. This eligibility is crucial because it opens the door to claiming the Credit for Other Dependents.
• Credit Amount: For the tax year 2023, the credit amount is set at $500 for each qualifying dependent. This flat credit provides a straightforward benefit, offering a fixed reduction in your tax liability.
• Tax Impact: The $500 credit reduces your tax liability dollar-for-dollar. For example, if your tax bill is $2,500, applying this credit would lower it to $2,000. Alternatively, if you’re due a refund, the credit would increase your refund by $500.

Important Consideration

When considering the Credit for Other Dependents, it’s important to keep in mind that while the $500 credit can offer valuable tax relief, it may not fully offset the significant costs associated with elder care, especially if you are managing considerable expenses.

Additionally, this credit is subject to income limitations, meaning that higher earners may see the credit phased out or reduced, diminishing its overall benefit. It’s also crucial to coordinate this credit with other potential tax benefits, such as the Dependent Care FSA or the Child and Dependent Care Credit, to avoid double-claiming expenses and help ensure you’re optimizing your tax savings.

Given these factors, working with a tax professional can be particularly beneficial, as they can help you navigate the complexities of tax rules, maximize your savings, and help to ensure compliance with IRS regulations.

Medical Expense Deduction

As medical costs continue to rise, particularly when caring for elderly parents, the tax code offers some relief through the Medical Expense Deduction. Let’s explore how this deduction can be applied to elder care expenses.

Qualifying for the Medical Expense Deduction and Elder Care

When it comes to claiming the Medical Expense Deduction for elder care, there are two primary requirements that must be met:

• Qualifying Dependent: To claim your parent’s medical expenses, they must be considered your legal dependent according to IRS guidelines. This generally means that your parent cannot be married and filing a joint return with someone else, their income must fall below a certain threshold, and you must provide more than half of their financial support. Meeting these criteria is essential to help  ensure that you can include your parent’s medical expenses in your deduction.
• Medical Expense Threshold: The Medical Expense Deduction is only applicable if your total qualified medical expenses exceed a certain percentage of your adjusted gross income (AGI). For the tax year 2023, this threshold is set at 7.5% of your AGI. This means that only the portion of your medical expenses that surpasses this 7.5% threshold can be deducted. For example, if your AGI is $50,000, you can only deduct medical expenses that exceed $3,750. This requirement can be a hurdle, but for those with significant medical costs, it provides an opportunity to reduce your taxable income.

Examples of Potentially Qualifying Elder Care Expenses

When claiming the Medical Expense Deduction for elder care, a variety of costs may qualify, provided they meet the IRS’s “ordinary and necessary” criteria. Below are some examples of expenses that could be eligible:

• Costs Related to Chronic Conditions: Expenses for treatment, medications, and doctor visits related to your parent’s chronic health conditions, such as diabetes, heart disease, or Alzheimer’s, may be deductible. These are considered necessary medical expenses and often represent a significant portion of elder care costs.
• Adult Daycare with a Medical Component: If the adult daycare facility provides actual medical services, such as medication management, physical therapy, or other health-related care, a portion of the payments may be deductible. It’s important to document the specific medical services provided to help ensure these expenses qualify.
• In-Home Nursing Care: Payments for in-home nursing care can qualify for the deduction if the services are provided by a licensed healthcare professional. This includes the cost of having a nurse or other healthcare provider visit your parent’s home to assist with medical needs, such as administering medications or managing chronic conditions.
• Medical Devices: The cost of medical devices, such as wheelchairs, oxygen tanks, hospital beds, and other necessary equipment, may be deductible if prescribed by a doctor. These devices must be essential for your parent’s health and well-being to qualify as a medical expense.

Important Considerations and Recommendations

• Recordkeeping: It’s very important to meticulously document all of your parent’s qualifying medical-related expenses throughout the year. To claim these deductions on your tax return, you must have proper documentation, including invoices and receipts. Without this supporting information, the expenses may not qualify, and you could miss out on valuable tax savings.
• Tax Professional Advice: Given the complexity of the tax code, particularly when dealing with elder care expenses, consulting with a professional tax advisor is highly recommended. A tax professional can help you organize and compile all qualifying expenses, especially in cases that are complicated or involve unusual circumstances. Their knowledge will help to ensure that you maximize your deductions while adhering to IRS requirements.
• Changes in Tax Codes: Tax laws and eligibility requirements for the Medical Expense Deduction can change from year to year. Staying informed about these changes is essential to help ensure that you remain eligible and that you can claim the maximum deduction available. A tax professional can also keep you updated on any relevant changes that may impact your situation.

While managing the threshold for deductions and handling numerous expenses may seem overwhelming, the Medical Expense Deduction can offer significant savings when caring for an aging parent. By consulting with a professional advisor, you can help ensure that you’re taking full advantage of this deduction and handling the process correctly, potentially saving a substantial amount of money on your taxes.

Why a Fiduciary Financial Advisor Can Be Your Ally in Managing Elder Care Costs

Caring for an elderly parent is both emotionally and financially challenging. While tax breaks can help alleviate some of the financial burden, the complexity of the tax code can be difficult to handle on your own.

Fiduciary Duty: Putting Your Needs First

Fiduciary advisors are required by law to prioritize your needs above all else. Their advice is focused on what’s best for your financial situation, not on their own compensation. This commitment makes them invaluable when it comes to effectively utilizing tax benefits for elder care costs.

Making Sense of Elder Care Tax Breaks

The tax rules for elder care benefits are filled with complex exceptions and requirements. A good financial advisor will:

• Find the Ideal Tax Breaks for You: Your situation is different, and some tax breaks will suit your needs better than others. Your advisor stays informed about the latest tax law changes and selects the benefits that are most advantageous to you, such as the Child and Dependent Care Credit or the Medical Expense Deduction.
• Consider Your Entire Financial Picture: They’ll assess your income, expenses, and overall financial health to identify which tax breaks can have the most significant impact on your situation.
• Plan Your Tax Strategy: It’s not just about claiming deductions; it’s about doing so strategically. For example, your advisor might recommend timing your medical expenses to maximize deductions, helping you save more at tax time.

Guiding You Through the Claim Process

Tax forms and filing procedures can be daunting, so having a financial advisor can be immensely helpful. They guide you through gathering the necessary documents to properly claim the tax breaks you’re entitled to, ensuring everything is well-documented and filed accurately. This can save you time, reduce stress, and help prevent costly mistakes on your tax return.

Beyond Tax Breaks: Holistic Financial Planning

The benefits of working with a fiduciary financial advisor extend beyond just helping with tax breaks for elder care. They can also assist with:

• Long-Term Care Planning: Developing a comprehensive plan to cover potential future elder care expenses.
• Retirement Planning: Creating strategies to help ensure your retirement savings remain on track while considering the care of your parents.
• Investment Strategies: Offering investment advice that aligns with your financial goals and risk tolerance, ensuring a balanced approach to your financial health.

Finding the Right Fiduciary Advisor

When selecting a fiduciary financial advisor, it’s important to choose someone who specializes in elder care planning and has experience working with families in similar situations. Look for an advisor who holds certifications such as Certified Financial Planner™ (CFP®) or Chartered Retirement Planning Counselor (CRPC®). Schedule consultations with several advisors to find someone you feel comfortable with and who can clearly explain your options.

Caring for an aging parent involves both love and challenges. By utilizing available tax breaks and partnering with a qualified fiduciary financial advisor, you can ease the financial burden and focus on what matters most: providing quality care for your loved one.

Wrapping up

While tax breaks can’t cover all the costs of caring for an aging parent, they can offer significant financial relief. The Child and Dependent Care Credit, Dependent Care FSAs, the Credit for Other Dependents, and the Medical Expense Deduction are all valuable tools you can use. Remember, understanding the tax code and maximizing these benefits can be complex.

Consider consulting with a tax advisor, especially a fiduciary financial advisor who is legally obligated to act in your best interest. They can help you determine which tax breaks apply to your situation and help ensure you claim them correctly.

For more information on elder care resources, you can visit the IRS website or the National Association of Area Agencies on Aging website.  Remember, you’re not alone in this journey. By seeking professional guidance and utilizing available tax breaks, you can better manage the financial challenges of caring for your loved one.

Disclaimer:

Landsberg Bennett Private Wealth Management is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. Landsberg Bennett Private Wealth Management and Hightower Advisors, LLC have not independently verified the accuracy of completeness of the information contained in this document. [Advisor Practice] and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. Landsberg Bennett Private Wealth Management and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. Landsberg Bennett Private Wealth Management and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions.

Hightower Advisors, LLC is an SEC registered investment adviser. Securities are offered through Hightower Securities, LLC member FINRA and SIPC. Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material is not intended or written to provide and should not be relied upon or used as a substitute for tax or legal advice. Information contained herein does not consider an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Clients are urged to consult their tax or legal advisor for related questions.