Elderly Person's Home Assistance/Aid Expenses: Deductible ?

It's fairly complicated, but look up "Long Term Care" in IRS Publication 502. Quoting: You can include in medical expenses amounts paid for qualified long-term care services and premiums paid for qualified long-term care insurance contracts.

Qualified long-term care services are necessary diagnos- tic, preventive, therapeutic, curing, treating, mitigating, re- habilitative services, and maintenance and personal care services (defined later) that are:

1. Required by a chronically ill individual, and
2. Provided pursuant to a plan of care prescribed by a li- censed health care practitioner End quote:

Arthur Rubin wrote: : On Tuesday, December 1, 2015 at 5:20:29 PM UTC-8, Bob wrote: : > Hello, : > : > For an elderly person who now requires home health assistance : > (washing, cooking, etc.) due to a multitude of medical problems, are : > these expenses in any way deductible : > on a 1040 ? : > : > Any caveats in doing so ? : > If "medically necessary" ?

: It's fairly complicated, but look up "Long Term Care" in IRS Publication 502. : Quoting: : You can include in medical expenses amounts paid for : qualified long-term care services and premiums paid for : qualified long-term care insurance contracts.

: Qualified long-term care services are necessary diagnos- : tic, preventive, therapeutic, curing, treating, mitigating, re- : habilitative services, and maintenance and personal care : services (defined later) that are: : 1. : Required by a chronically ill individual, and : 2. : Provided pursuant to a plan of care prescribed by a li- : censed health care practitioner : End quote:

: -- : Arthur L. Rubin : CRTP, AFSP, in Brea, CA Side note form my eexperience,

Make sure that you are paying all the estimated income taxes, Social Security and State unemployment insurance, etc, unless you are hiring through an agency that charges you directly and pays the Aid.

Wendy Baker

Adding to Arthur;s comments... After you read about Longterm Care Services in Pub 502, please note that there are two very important elements. 1. There has to be a written plan of care for the person receiving the services. 2. A licensed healthcare professional must certify each tax year, that the person is still chronically ill and requires the care.

All of the above is typically maintained in the person's medical records maintained by the physician or if living in a licensed assisted living facility or nursing home a plan of care document maintained on site.