topic Medical Expense Deduction for Parents in Deductions & credits

Medical Expense Deduction for Parents

AMJ3 — Thu, 18 Mar 2021 13:13:22 GMT

What qualifies as son paying for parents medical expenses? If son periodically sent the parents cash; but bill was actually paid out of parent's account - would that still allow son to take deduction instead of parents? All other rules for deduction are met - e.g., son covered over half of their expenses.

Re: Medical Expense Deduction for Parents

DaveF1006 — Thu, 18 Mar 2021 22:14:05 GMT

It depends. The only way the son can deduct the medical expenses to to declare his parents as dependents on his return. The parents do not need to live with him during the year but there are specific parameters for them to qualify as his qualifying relatives. Here are the parameters.

Relationship: The person must live in your home for the entire year (be a "member of your household") OR be related to you.

Gross Income: Generally, it must be less than $4,300 (not including Social Security or welfare.)

Support: Generally, you must provide more than half the person's support.

Marital status: Generally, a dependent cannot file a joint tax return with a spouse. The only exception is when the dependent files a joint return only to get a return of taxes paid and, if separate returns filed, neither dependent or spouse would have a tax liability.

Nationality: The person must be a United States citizen; or a resident or national of the U.S., Canada or Mexico. An adopted child that is not a US citizen or resident of the US, Canada, or Mexico must live with you for the entire year.

Individuals related to you in the following way do not need to live with you:

Your child, stepchild, foster child, or descendant of any of these
Your sister, brother, half brother, half sister, stepbrother, or stepsister
Your father, mother, grandparent, or other direct ancestor (does not include foster parents)
Your stepmother or stepfather
Sons or daughters of your brother or sister
Sons or daughters of your half brother or half sister
Brothers and sisters of your father and mother
Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

Re: Medical Expense Deduction for Parents

AMJ3 — Mon, 10 May 2021 16:18:27 GMT

Thanks for the info...you mention in the dependent approach - gross income that "generally" it must be less than 4300 and "generally" you must provide half the support. In my case - parent is completely disabled with income of $6100 (x-social security); and I provide support in all aspects of care/medical/administrative support/etc. All bill have been paid from their accounts, however. Is there some wiggle room in the rule for a unique situation like this?

Separately - there is also an ability to deduct if you don't claim them as dependent, as long as you paid for over half of the medical expenses. That was the scenario I was contemplating. I just didn't know if there needed to be support to show it came from an account with my name. Our accounts are mixed/shared. His name happens to be on the account that was used to pay.