If my dad spends all of his money to just pay his memory care facility. Can he claim the taxes that they took from his payments every year. That is really all he has.

[xmasbaby0]

Sorry to hear that your dad is in memory care.  That is very hard for all of you.  What do you mean by "claim the taxes that they took from his payments?"   What income does your dad receive?   Is tax withheld from his income?   

[bellasmygirl9]

My dad gets his pension from Ford’s, and he’s on Social Security disability. I do believe Ford’s does take taxes out on him. His total income for the month is approximately $3800 and his monthly payment is approximately 3875 a month so it’s literally taking every single penny. He makes to keep him there. The facility sent us a paper stating we could claim $1100 for last year, perhaps that’s not correct but that’s the way the paper reads if you think that this might be an impossible thing then I will have to check with the facility once again. Thanks for your input. 

[xmasbaby0]

@bellasmygirl9 

Your dad should have a SSA1099 from Social Security and a 1099R from the pension.   Those tax documents can be entered on a tax return.   You will also want a statement from the nursing home showing how much he has paid the home out of pocket in 2022.

It is very hard to use  medical expenses as a deduction but in his case--maybe.   Medical expenses are itemized deductions.  Only the amount above 7.5% of his adjusted gross income "counts" as a deduction, and then he has to meet the threshold of that deduction exceeding his standard deduction.   If he meets those thresholds, and had tax withheld from his SS or his pension, he might be able to get an income tax refund.

 Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

HOW TO GET SSA-1099

If you cannot find your SSA1099,you can get one from your nearest Social Security office, or there is a way to go on the Social Security website and request one.  Go to www.ssa.gov  You have to create an account with a user name and password.

https://www.ssa.gov/myaccount/replacement-SSA-1099.html

https://www.ssa.gov/onlineservices/

https://www.ssa.gov/myaccount/

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2022—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

And....by the way----did he file a 2020 or 2021 tax return?  Did he receive the stimulus checks that were sent out in 2020 and/or 2021?   

[Opus 17]

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@bellasmygirl9 wrote:

My dad gets his pension from Ford’s, and he’s on Social Security disability. I do believe Ford’s does take taxes out on him. His total income for the month is approximately $3800 and his monthly payment is approximately 3875 a month so it’s literally taking every single penny. He makes to keep him there. The facility sent us a paper stating we could claim $1100 for last year, perhaps that’s not correct but that’s the way the paper reads if you think that this might be an impossible thing then I will have to check with the facility once again. Thanks for your input. 

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Let's start fresh.

(And when I say "your father owes tax" or "your father can take a deduction", that would also apply if you a filing his tax returns for him.)

First of all, your father owes income tax on all his income, even though it is being used for a memory care facility.  Imagine if instead, your father received his social security and pension, and then wrote checks for a mortgage, a cook to provide meals, and a maid to keep the house clean and do his laundry.   He reports all his income as taxable, he gets credit for any taxes that were withheld by the pension payer, and might owe more tax or get a refund, depending on the taxes owed and withholding.  

Next, your father can take an itemized deduction for medical expenses.   Whether that actually reduces his tax will depend on his total other itemized deductions.  

Then we have to ask, what are allowable medical expenses.  That would be drugs, co-pays, doctor and hospital fees, and so on.  Assisted living is normally not a medical expense.  He can deduct the portion of his assisted living fees that correspond to medical services.  Usually the facility will provide a statement.

However, he can deduct the entire cost of the assisted living facility if he meets three tests.

1. He is chronically ill with a physical illness or a cogntive impairment

2. He requires assistance with 2 or more activities of daily living.  ADLs are eating, dressing, toileting, bathing, transferring, or managing continence.

3. Care is provided according to a written care plan that is developed by a qualified medical professional or social worker and that is reviewed and updated at least once a year.

Depending on his cognitive condition, he might qualify to deduct the entire cost of the facility now, or maybe that will come later if his condition progresses.  But the written plan is a key step.  Once he meets those conditions and you have a written plan, the entire cost becomes a deductible medical expense.

[bellasmygirl9]

Can you tell me what a “written plan “ means?

Thanks for your help

[bellasmygirl9]

I figured it out. Just a little tired tonight. 
Thanks again

[Opus 17]

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@bellasmygirl9 wrote:

Can you tell me what a “written plan “ means?

Thanks for your help

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A written care plan would be a document written by a medical professional or other qualified person (such as a social worker specializing in geriatric care) that describes the specific service the person needs on a day to day basis and how the facility will provide for those needs.  Depending on the person, it might include assistance dressing or eating, or having their location monitored and being kept behind locked or guarded doors, assistance changing incontinence garments, reminding a person with dementia when they need to eat, bathe, go to bed, etc.