Medical deductions

[Mildred2Me]

My wife has dementia and Parkinsons disease. Twice a week I pay out of pocket a private agency to send a lady to care for my wife while i get out  of the house. I pay the agency directly who then pays the caregiver and is responsible for her social security, withholding sets. May I deduct my costs in annual return under medical deductions or some where else? Thanks.

[carmen_t]

Hello and thank you for your question.  You may input the medical out of pocket expenses in TurboTax under the medical expenses section located within deductions/credits.  Please keep in mind; however, it is a Schedule A item subject to 7.5% AGI.  Basically, medical expenses paid above 7/5% AGI would be a deduction added to Schedule A.  If standard deduction is used the standard deduction will apply and not include the medical deductions.  If itemized deductions are higher then that will be recommended to be used and include medical expenses paid above 7.5% AGI.  The higher of standard verus itemized is best to reduce overall taxable income.