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February 23, 2021
Question

Can in-house care be deducted for medical expense

  • February 23, 2021
  • 2 replies
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had hospice and in house care can that be deducted

2 replies

Employee
February 23, 2021

Yes. If those costs were not reimbursed they are medical deductions if you itemize. Only an amount of total medical expenses greater than 7.5 percent of your AGI can be deducted. 

Employee
February 23, 2021

Actually, that depends.  For in-home care, you can deduct the cost of nursing services.  This is what the IRS says.

 

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.

Generally, only the amount spent for nursing services is a medical expense. If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. For example, because of your medical condition, you pay a visiting nurse $300 per week for medical and household services. She spends 10% of her time doing household services such as washing dishes and laundry. You can include only $270 per week as medical expenses. The $30 (10% × $300) allocated to household services can't be included. However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Maintenance and personal care services under Long-Term Care, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. See Pub. 503.

You can also include in medical expenses part of the amount you pay for that attendant's meals. Divide the food expense among the household members to find the cost of the attendant's food. Then divide that cost in the same manner as in the preceding paragraph. If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant.

 

 

A hospice care facility would fall under the rules for Nursing Homes.  The entire cost is deductible if the main reason the person was there is a medical need or condition.