Is Home Health Care Tax Deductible?
Is Home Health Care Tax Deductible?
Many senior health care and medical expenses can be written off on your taxes. But is elder home health care tax deductible? It can be, depending on the type of care needed and whether a doctor has decided it’s medically necessary.
What are the requirements for home health care to be tax deductible?
For long-term home care to be tax deductible, care needs to be performed by a home healthcare worker, and three requirements generally need to be met:
- The individual receiving the care must be chronically ill.
- The care must be prescribed by a licensed healthcare professional.
- The care must be of a type approved by the IRS to be tax deductible.
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What does it mean to be chronically ill?
Chronically ill in this context means that the person is unable to perform at least two activities of daily living without assistance for at least ninety days1. Activities of daily living are the basic daily tasks every person needs to be able to perform to live: eating, using the restroom, moving from one location to another, bathing, and dressing.
A person can also qualify as chronically ill if they suffer from significant cognitive impairment and require significant supervision or protection as a result.
To help your loved one stay safe as they receive home care, consider investing in an indoor nanny cam. With one of these devices, you can check in on your family member while you’re away or communicate with caregivers when they come to help. Check out our Nanny Cam Buyers Guide to learn more.
What types of home health care are tax deductible?
For long-term care to be tax deductible, it must fall under one of these umbrellas:
- Diagnostic
- Preventive
- Therapeutic
- Curing
- Treating
- Mitigating
- Rehabilitative services
- Maintenance and personal care services
Maintenance and personal care services covers help with activities of daily living, such as bathing, dressing, and eating. Many chronically ill people require assistance with at least some of these tasks.
If your family member’s care aligns with one of those categories and your situation meets the three qualifications above, the care they receive could be tax deductible.
Consult a tax professional
As always, when you’re dealing with taxes and the IRS, we recommend consulting a professional unless you’re 100% sure you know what you’re doing. Taxes can be complex, and claiming certain deductions can invalidate others. Additionally, you're likely dealing with enough stress if you have a chronically ill family member as a dependent. Let a pro handle the tax issues. Check out the IRS' directory of credentialed tax return preparers, or get help with tax software like Turbo Tax.
FAQ
Yes, caregivers can put their parents as dependents on their income taxes, but you need to meet some of the IRS' requirements:
- You can't be someone else's dependent
- Your parents can't file a joint tax return or someone else's dependant
- You paid more than half of your parent's support that year
- Your parent's gross income for the calendar year had to be less than $4,300
- They had to have lived with you all year in your main home if they are your foster parent
You can learn more about if your parent qualifies to be a dependent at the IRS website.
The short answer is yes, but there are some criteria you need to meet:
- You must be unmarried or unmarried on the last day of the year.
- You claim your parent as a dependant.
You paid more than half of the cost of keeping up a home for your parent more than half of the tax year.
According to the IRS2, you can, if you itemize your deductions and you list your parent as a dependent. But, you can only claim the portion that wasn't covered by insurance.
Medical alert companies like Bay Alarm Medical provide you with a button you can push for assistance in the case of an emergency. There are different types of medical alert systems, like at-home or GPS-enabled devices, but all of them quickly connect you to help when you need it most. The help button is usually worn as a pendant, wristband or watch, but you can also place buttons on the walls throughout your home.
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Info current as of 05/13/21. Offers and availability may vary by location and are subject to change.
Sources
- Cornell University, 26 USC § 7702B(c)(2), "Chronically Ill Individual". Accessed October 28, 2022.
- IRS, "For Caregivers". Accessed October 28, 2022.
Disclaimers
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