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You may want to make it plain to them now that when their health worsens and they need more and more help with their ADLs, you will not be able to care for them. You cannot afford to quit your job and jeopardize your future Social Security earnings. You can not afford to pay for their care.
Your parents should be paying their own way. HUD has their recipients paying 30% of their monthy income for rent that Hud subsidizes. You really can't take all your bills and cut them in half and expect ur parents to pay that half. I would first take their monthly income and deduct their personal needs. They should be paying their own bills, like doctors, clothing, Depends, toiletries etc. Then its whats left. So if they bring in 1500 and 500 goes towards their expenses, you have 1000 to work with. Then you take 30 or 50% of that. Have them write you a check with rent written on memo line. Keep good records, never know when Medicaid will be needed.
You will need a contract for charging rent. Reason for an elder lawyer. You will never get back for what u spent on the bathroom from ur parents. By them paying for it, its considered a gift and will effect eligibility for Medicaid. Medicaid figures that you profit from that bathroom when u sell the house.
https://www.aarp.org/caregiving/financial-legal/info-2017/tax-tips-family-caregivers.html
I've been doing this for a few years and my tax software has the correct expenses deduction to be able to do this. You will need your parents social security numbers on hand, as well. Be sure to keep detailed records of what you provide to your parents upkeep and care. Your parents will not be able to file and claim themselves any longer.
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