Can I deduct medical expenses that I covered for my father in 2021? I covered his treatment. It was more than 20% of my AGI. My father is in another country (not US).

[Dutch777]

My father has been going through a cancer treatment and I covered expenses (medication, chemo sessions, CAT scans, etc.) in his home country (not US). I paid directly to the clinic. He couldn't possibly pay for it as it's 10 times or more of his total income. My father is retired and will turn 70 this year. I have all documentation from the clinic and transactions with my payments.

[JamesG1]

Once your parent does meet the IRS dependency tests, you can use any medical expenses you pay for your parent toward this itemized deduction. Since medical costs must exceed 10 percent of your adjusted gross income before you can claim them, a parent's added expenses could help you meet the requirements.

There are special tax rules for parents. A parent may qualify as your dependent, even if your parent does not live with you. 

Here are the main reminders for claiming a parent as a dependent:

• Is supported (more than 50%) by you
• Residency and Relationship
• Earned less than $4,300 of gross (total) income
• Is not a qualifying dependent of anyone else.

See this TurboTax Help.

[Dutch777]

Thank you! I keep reading current regulation and I'm not sure if I have any chance of deducting my expenses in 2021 or not. I'd like to clarify my circumstances:

1. My father doesn't live with me.

2. My father lives in another country and doesn't file a US tax return.

3. My father (or my father and my mother) would pass the 'lower than 4,100 USD/year income' test.

4. As these medical expenses were significant I provided more than half of my father's support - which includes these medical expenses for oncological treatment - in 2021.

5. These medical expenses were greater than 20% of my gross income.

6. I can provide documentation for the treatment and receipts as well as documentation for my payments to the clinic.

Is there an option for me to deduct these medical expenses or part of it?

Kind regards,

Nik

[JamesG1]

Your parent may be claimed as a dependent even if the parent does not live with you.

But to meet the residency requirement, the person you are caring for must meet one of the following:

• Be a legal US Citizen
• Be a U.S. National
• Be a U.S. Resident Alien
• Be a Resident of Canada or Mexico

The parent you want to claim as a dependent on your tax return must have a social security number (SSN) or an individual tax identification number (ITIN). Either of these numbers will satisfy the identification requirement for the IRS. Also, the parent you are claiming cannot file a joint tax return.

To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual.

To report itemize medical deductions in TurboTax Online Premier version, follow these directions.

• Down the left side of the screen, click Federal.
• Across the top of the screen, click Deductions & credits.
• Scroll down to Medical.  Click Show more to the right.
• Click Start / Revisit to the right of Medical Expenses.
• Click on Edit / Add to the right.
• You will enter medical expenses on several screens.

See this TurboTax Help.

[Dutch777]

Thank you for the reply. My father lives in another country and doesn't pass US dependent test because of the residency requirements you listed. 

My question is about whether there is a way to deduct any medical expenses paid for your father that lives in another country and can't be claimed as a dependent in the US? Or currently there's no conditions that would allow a deduction in such a case? Just want to make sure there's no deduction whatsoever that I can claim in this situation. Happy to provide additional details if needed.

Kind regards,

Nik 

[LeonardS]

No, if your father does not meet the residency test there are currently no conditions that would allow you a deduction.

[Dutch777]

Thank you for confirmation. Appreciate your help and prompt response! 

Kind regards,

Nik