- advertisement -

Deducting nursing home costs

 

Dear Tax Talk,
Are nursing home expenses tax deductible? Thanks. -- William

- advertisement -

Dear William,
Generally, you can claim these expenses as itemized deductions under medical expenses. The key is to make sure that your medical expenses meet the deductibility threshold.

Medical expenses are deductible to the extent they exceed 7.5 percent of your adjusted gross income and are not reimbursed. Since nursing home expenses are usually not reimbursed and represent a substantial cost, they are usually sufficient to avoid paying taxes, which helps somewhat in obtaining the services.

Internal Revenue Service Publication 502, Medical and Dental Expenses, provides the following guidance:

You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.

Do not include the cost of meals and lodging if the reason for being in the home is personal. You can, however, include in medical expenses the part of the cost that is for medical or nursing care.

You can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. These services can be provided in your home or another care facility.

 
-- Posted: July 23, 2004
   

 

 
 

 

Looking for more stories like this? We'll send them directly to you!
Bankrate.com's corrections policy
Print  
 

Compare Rates
NATIONAL OVERNIGHT AVERAGES
30 yr fixed mtg 4.45%
48 month new car loan 3.77%
1 yr CD 0.89%
Rates may include points



Mortgage calculator
See your FICO Score Range -- Free
How much money can you save in your 401(k) plan?
Which is better -- a rebate or special dealer financing?
VIEW MORE CALCULATORS

BASICS SERIES
Tax Basics
Knowing how to file can save you money.
Filling out the W-4 form
What is my tax rate?
How to itemize deductions
Tax credits can lower bill
Death and taxes
Tax record-keeping

MORE ON BANKRATE
Income tax rates  
Tax forms  
State taxes  
Tax basics


- advertisement -
 
- advertisement -