Opinions: Is thuis deductible

Qualified long-term care expenses, even in the home, are a valid medical itemized deduction. Check out the discussion in IRS Publication 502, paying special attention to the Activities of Daily Living and the documentation needed.

-- Phil Marti Clarksburg, MD

"Bill Lentz" wrote

They sound like a medical expense.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

Related publications:

Schedule A Itemized Deductions lines 1-4 may be of interest:

Hard to say more without knowing more about his income and filing situation.

-- Todd H.

Now then, who wants to tell the OP about Schedule H implications? ChEAr$, Harlan Lunsford, EA n LA

I didn't because it sounded like the caregivers are employees of the company providing them.

-- Phil Marti Clarksburg, MD

The OP said the "payments are made to the company providing the sitters" so there should not be any employment tax implications for the poster or his father. I had a similar situation with my own father this year. We elected not to go with a company because they paid about $7 to the sitters while charging us $15.75 per hour. We got our own EIN, hired the sitters directly and paid $13 per hour. Cost us the same $15.75 - the difference between that and the $13 paid being the state and federal unemployment and employer's share of employment taxes. I'm not sure this would work anywhere but Texas since this is the only state that does not require workers comp insurance - which I found it quite impossible to arrange despite my best efforts. Nobody wanted to write a policy for two employees.

-Crystal

Thanks for the info, and the payments are made to a sitter service, not directly to individuals, so I'm assuming payroll taxes are their problem and not mine. Best Bill