nursing home costs
Are nursing home expenses tax deductible? Thanks.
Generally, you can claim these expenses as itemized deductions under
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.