Can I deduct my caregiver as a medical expense

[sjfab]

My dad has a private caregiver 24/7 at $15 per hour. He is there to cook, clean and generally take care of him.  Can all of this be deducted?  The hired caregiver is private and not prescribed by a doctor.

[Coleen3 · Accepted solution]

It may not be deductible as a medical expense. See below. See which of these two possibilities you might qualify for. Your father has to be your dependent. 

1) For the purposes of the Child and Dependent Care Credit, a "Qualifying Person" is defined as one of the following: (parent)

Anybody who lived in your home for at least 6 months during 2018 and was unable to care for themselves, if they:

• Are claimed as a dependent on your return, or
• Could have been claimed as your dependent but weren't because their gross income was $4,150 or more, s/he filed a joint return, or you (or your jointly-filing spouse) could be claimed as a dependent on somebody else's 2018 return.

To qualify for this credit, you must meet all of these criteria:

• You (and your spouse, if filing jointly) must have earned income
• The earned income requirement for one spouse is waived if s/he was a full-time student or
• Disabled, if they lived with the other spouse for more than 6 months in 2018
• You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work
• The work/look for work requirement for one spouse is waived if s/he was a full-time student or
• Disabled, if they lived with the other spouse for more than 6 months in 2018
• You paid a caregiver to care for a Qualifying Person. The caregiver cannot be:
• Your spouse;
• Your dependent;
• Your child if they were under 19 on the last day of 2018, even if not your dependent; or
• The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2017.
• You cannot file with the Married Filing Separately filing status
• You must furnish the care provider's name, address, and (unless it's a tax-exempt organization) their SSN, ITIN, or EIN on your return.

2) Nursing Services

You can include in medical expenses wages and other amounts you pay for 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.

Generally, only the amount spent for nursing services is a medical expense. If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. She spends 10% of her time doing household services such as washing dishes and laundry. You can include only $270 per week as medical expenses. The $30 (10% × $300) allocated to household services can't be included. However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Maintenance and personal care services under Long-Term Care, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. See Pub. 503.

From <https://www.irs.gov/publications/p502/ar02.html#en_US_2016_publink1000178866> 

[sjfab]

Thank you for this answer. I need to clarify that the deduction is not for my taxes but for my dads.  I'd like my dad to deduct his caregiving expense on his taxes.

[Coleen3]

Then the dependent care is not applicable. If they payments to the caregiver are for medical expenses as explained in the second example, then he can deduct it on Schedule A if he itemizes.

[SSB2]

How do  I report the care givers income?  Would that be a 1099-NEC form?

[afeckste]

Can expenses paid to an agency that provides in-home, live-in caregivers (not nurses) be deducted as a medical expense under the Maintenance and Personal Care Services clause of Long-Term Care? My Mom's expenses and the provider are qualified under her Long-Term Care Insurance. My Mom definitely falls under needing care for protection from threats to health and safety due to cognitive impairment - she has Alzheimer's.

[JeffreyR77]

Yes, the expenses that are not covered by insurance are deductible as itemized medical deductions greater than 7.5% of your adjusted gross income.