deducting monthly care (group) home costs for my mother with dementia

[21-dm-Oak]

My mother has advanced dementia and needs round the clock care.  She is now living in a care home for the elderly.  Is the entire cost of the care home deductible as a medical expense?  Also, since my father, brother and I split the monthly charges, can each of us include our portion of the monthly charges on our individual tax returns under medical expenses if we do schedule A?  and do we need to fill out a particular form indicating that this expense is shared amongst the family members?

[RayW7]

You can only deduct Nursing Home Care If the primary reason was for medical care. 

The deduction is limited to qualified medical expenses which exceed 7.5% of your Adjusted Gross Income. 

Also, you will be able to deduct the costs if you are able to itemize your deductions as opposed to taking the standard deduction.

In TurboTax, you can enter your medical expenses in the Federal section of the program. 

1. Select Deductions & Credits 
2. Select Medical 
3. Select Medical expenses 
4. Enter your nursing care expenses under medical facility fees.

Yes, you can split the cost and claim individually on Schedule A.  However, remember on Schedule A there are limitations for Medical Deductions.

Please use this link for more details:  Publication 502

[21-dm-Oak]

Tx Ray for you’re answer.  My mother’s care home is not a “nursing” home since there is no health care professional on duty nor is one on contract to the care home.  With this in mind, can I still deduct the care home costs under “medical expenses”?

Also, can my father sign the tax returns for my mother if she is no longer able to sign due to dementia?

[ToddL99]

Yes, your father can sign tax returns for your mother if she is no longer able to do it herself.

He will need a power of attorney (Form 2848).  He can complete the tax return, but cannot e-file.  Print and file by mail, sign your mother's name then "poa" and his name, and attach a copy of the POA to the return when he mails it.

It is not necessary to have a "health care professional" on duty to qualify the costs of a nursing home as a medical expense.

• Assisted living expenses are deductible when a doctor has certified that a patient cannot care for themself. They are unable to perform two or more activities of daily living such as eating, toileting, transferring, bath, dressing, or continence.
• Or they require supervision due to a cognitive impairment (such as Alzheimer's disease or another form of dementia).
• In order to qualify for the deduction, there must be a plan of care prepared that lists all of the services that the resident will receive. The assisted living facility should provide the resident with a statement showing what part of their fees is for medical costs."