You can deduct medical expenses you pay for the care of yourself, your spouse, your dependents, or someone who qualifies to be your dependent except for the income or married filing jointly rule. For example, you can deduct the cost of medical expenses for a parent if you pay more than half their total support, even if they are disqualified from being your tax dependent because they have more than $5050 of taxable income.
You can deduct the cost of 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."
You can't deduct the cost for companionship, meal prep, laundry, or other household services. You must make a reasonable allocation as to how much time the caregiver spends providing nursing services. If you hire a service, they may be able to give you a percentage, but if not, you have to figure it out.
You may be able to deduct the entire cost of long term care if the patient meets these two additional tests,
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The individual is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. OR the individual requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.
- The care is provided according to a written care plan prescribed by a qualified medical professional that is reviewed and re-certified at least once a year.
If the expenses are for a chronically ill person who meets the first test, but you don't have a written care plan, you can only deduct nursing services for now. If you can get a written care plan, then your expenses after that point can be fully deductible.
If the person is unable to care for themselves due to a chronic illness as described above, and you have to pay for care so that you can work (and your spouse, if married), and they are your tax dependent, then you can also claim the Child and Dependent Care Credit. But the person must be your tax dependent, this credit does not follow the looser rule for medical expenses.
