Explore the tax deductions you are entitled to at the IRS website. For instance, did you know that you can claim your elderly parent as a dependent? Your parent must have an income below a certain level, as determined by the government. To qualify, you also need to show that you pay half of your parent's yearly living expenses. This includes basic shelter or rent (including other bills), meals, and clothes. You can even claim medical bills and expenses your parent's insurance does not pick up. Also, your senior parent does not have to be living with you to list him or her as a dependent. Be sure and examine the tax laws in the state where you live, or ask your tax preparer who you can claim. If you have many caretaking expenses, it's worth investigating.