Is in home or memory care tax deductible?

ImMaggieMae

Does anyone know if any in home or facility care is tax deductible?

loveskitties

If you go to the IRS web site and look for publication Publication 502 (2021) you may find what you need.

Long term care starts about page 11.

Gig Harbor

I think the amount that is over the 10%of your adjusted gross income is deductible. This will be my first year of testing this so I am not an expert like many others here.

Rescue mom

Some parts of long-term facility care (memory care/AL) can be, if certain conditions are met. I couldn’t define/describe it, would need a professional tax expert. The entire cost isn’t deductible, but some costs were.

toolbeltexpert

Thank you ImMaggieMae for your question, you got me questioning ,I  had talked with my tax guy a month ago and specifically asked him if I could deduct my dw care and he mentioned once I get past 10 percent of my income I could deduct it. I asked him because I am going to be taking some money out and when I do I have to pay tax on what I withdraw. So I am hoping to recoup the tax money.

I am gonna check back with him ask ask specifically if there are parts that are not deductible.

I spent 8500 in a snf and plus 14k at assisted living memory care. 

Which for all intensive purposes is a dedicated mc,with different levels  of care.

Well before I posted I eent to the irs publication 502 around page 11, thank you loveskittles, here is what it say. The last parts are the key. Cognitive impairment.

Long-Term Care

You can include in medical expenses amounts paid for

qualified long-term care services and certain amounts of

premiums paid for qualified long-term care insurance con-

tracts.

Qualified Long-Term Care Services

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.

Chronically ill individual. An individual is chronically ill

if, within the previous 12 months, a licensed health care

practitioner has certified that the individual meets either of

the following descriptions.

1. He or she is unable to perform at least two activities of

daily living without substantial assistance from an-

other individual for at least 90 days, due to a loss of

functional capacity. Activities of daily living are eating,

toileting, transferring, bathing, dressing, and conti-

nence.

2. He or she requires substantial supervision to be pro-

tected from threats to health and safety due to severe

cognitive impairment.

Maintenance and personal care services. Mainte-

nance or personal care services is care which has as its

primary purpose the providing of a chronically ill individual

with needed assistance with his or her disabilities (includ-

ing protection from threats to health and safety due to se-

vere cognitive impairment).

There is more but that settles it for me. The internet made that easy peasy 

Stewart

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caberr

Thanks for this.  I usually do my own taxes but with this information I think I need a tax person.

Rescue mom

As I recall, the problem to me was in how certain needs or services are defined. I though certain things meant one thing just by common sense, but silly me. What I thought “medical care” or “prescription medication” meant, was Not what the IRS thinks it means. Or “threats to health and safety” or “professionals” etc.

OTOH  I was new to the whole tax process; others surely “get it”  better than I.  But I would have messed up without expert advice on what I was reading, and I would have stressed about it (or an audit) regardless.  

ImMaggieMae

The “medical” parts of my DH’s care are covered by Medicare and Medicare supplement insurance. But in home respite care is through an agency but the caregiver isn’t a nurse or medical person, just someone experienced in caring for people with dementia  It’s only 12 hours per week, but comes to a sizable amount of money over a year. So would that be deductible if we pay the agency for his care? 

Similarly, many people here who have LO in facilities are primarily being cared for by non-medical people although as I understand it, there is usually a RN or other medical professional on staff. 

Crushed

1) its the amount that exceeds 7.5% 

2)  Everything in LTC that meets the standards is deductible

  Qualified Long-Term Care Services
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.
Chronically ill individual. An individual is chronically ill
if, within the previous 12 months, a licensed health care
practitioner has certified that the individual meets either of
the following descriptions.
1. He or she is unable to perform at least two activities of
daily living without substantial assistance from an-
other individual for at least 90 days, due to a loss of
functional capacity. Activities of daily living are eating,
toileting, transferring, bathing, dressing, and conti-
nence.
2. He or she requires substantial supervision to be pro-
tected from threats to health and safety due to severe
cognitive impairment.
Maintenance and personal care services. Mainte-
nance or personal care services is care which has as its
primary purpose the providing of a chronically ill individual
with needed assistance with his or her disabilities (includ-
ing protection from threats to health and safety due to se-
vere cognitive impairment)
 

ImMaggieMae

So it sounds like in home health care through an agency by a unlicensed caregiver for 12 hours per week would not be deductible even though my husband requires constant watching and some ADL’s since it is for my convenience, respite care so to speak. Taxes can be so confusing.

Last Dance

From: Last Dance I would not do my own taxes. You need to make sure you have a qualified tax person do your taxes, even if it cost a little money. Remember the IRS is hiring someing like 87000 new tax agents to go after us. Even if they don't accuse you of fraud, you still would pay Taxes, Interest, and a penalty for any money you would owe, and a good tax person might take deductions that you are not aware of.

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Elshack

https://alzconnected.org/discussion/62969/is-in-home-or-memory-care-tax-deductible

GIg H gave you the correct advice. My nephew did our taxes this year and could deduct the 5 mo rent DH was in memory care. Also could list the cost of all the Depends I bought and meds etc. He made out the long form and my refund was 2x the amt I got last year from the federal govt.