• victor0victor0 victor0victor0
    May 02, 2011
    Is Dementia Care Tax Deductible?
    victor0victor0 victor0victor0
    May 02, 2011
    My father is in an assisted living facility with a "memory care unit" which cares for people with alzheimers and dementia. My father is diagnosed with dementia. The facility fees largest line items are "personal care services" and "rent" "Rent" includes room, meals, housekeeping, and a basic level of care. Are all my father's facility fees tax deductible? READ MORE

FROM OUR EXPERTS

  • Carol Bradley Bursack
    Health Guide
    June 13, 2011
    Carol Bradley Bursack
    Health Guide
    May 02, 2011

    Good point, Nina, all though tax laws are always changing. Some people are much better at keeping up with these changes than others. I am always more comfortable with a CPA, but then I'm not great with numbers. With today's software, a lot more people do their own taxes. As long as this person keeps up with IRS changes every year, then they are probably okay. Still, a CPA stamp is a good thing when it comes to audits.

     

    You have been amazing with all you've learned!

    Carol

    • NC
      NC
      June 13, 2011
      NC
      NC
      June 13, 2011

      Hmm, Carol, never thought of this: CPA stamp and audits. Well it makes sense!

      We seeked on CPA the first time and the guy was strange: he was like it is so easy, and you can do it yourself! Didn't seem eager to get this job???

       

      Nina

      READ MORE
    • Carol Bradley Bursack
      June 13, 2011
      Carol Bradley Bursack
      Health Guide
      June 13, 2011

      That is odd! I think I'd find another CPA if I needed one. We kind of like to feel they want our business : ) 

       

      We always appreciate your input so much!

       

      Take care, Nina.

      Carol

      READ MORE
  • AFA Social Services
    Health Guide
    June 10, 2011
    AFA Social Services
    Health Guide
    May 02, 2011

    This is an excellent question.  The short answer is quite possibly. According to the IRS, if your father's long-term care medical expenses are such that they exceed 7.5% of his ‘adjusted gross income', then these expenses (the amount over 7.5%) can be deducted.  You can get more information from the IRS:  http://www.irs.gov/pub/irs-pdf/p502.pdf  It is also recommended that you double-check with an accountant before filing.

    • NC
      NC
      June 10, 2011
      NC
      NC
      June 10, 2011

      7.5% is calculated in IRS by form 1040 Schedule A.

       

      Everyone says to check with CPA. It is true CPA can make sure you  don't make any errors. Once you get the idea on how to do this, it is not hard at all. No need to use a CPA every year and waste money.


      Nina

      READ MORE
  • Carol Bradley Bursack
    Health Guide
    May 04, 2011
    Carol Bradley Bursack
    Health Guide
    May 02, 2011

    Nina made some very good points. I would also suggest that you have a CPA examine the expenses. Be sure to keep all receipts. If you are personally paying for the care, and it is over a certain percentage of your income, you may be able to deduct expenses. You want to be very certain what you do is IRS friendly, so I'd strongly suggest an expert.

    Best,

    Carol


FROM OUR COMMUNITY

  • NC
    NC
    May 02, 2011
    NC
    NC
    May 02, 2011

    My father-in-law's residential care sent us explanation on the tax. They are not responsible for this but they explained their position.

    Basically, if it is home care, the caregiver's salary is tax deductible provided that for each year, a doctor writes and proofs that he has dementia or Alzheimer's and he cannot take care of himself at all.

    However, food and lodge cannot be tax deductible in the nursing home unless you can get a doctor telling IRS that he needs medical care with the disease such as heart disease or cancer and so on. This means the caregivers/managers' fees or operation fees are tax deductible provided that he is incompetent. Usually the home would give you a percentage on that to separate that from the lodge or food.

    We did everything. I reported all of the nursing home expenses saying my FIL needs medical care and we got the refund.

     

    Good luck,
    Nina

    READ MORE
You should know Answers to your question are meant to provide general health information but should not replace medical advice you receive from a doctor. No answers should be viewed as a diagnosis or recommended treatment for a condition. Content posted by community members does not necessarily reflect the views of Remedy Health Media, which also reserves the right to remove material deemed inappropriate.

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