In-home nursing care for elderly parent

[Ocsddc]

My mother recently received a letter from the in-home caregiver service that provides a caregiver 5x/week to help her with daily activities (feeding, medication administration, bathroom, etc) due to dementia, stating that she paid a total of X amount for services in tax year 2023 and that that amount may be deductible on her taxes. Is there a particular form that needs to be filled out for this or is it just general medical expenses? It's a large amount and I'm concerned it's going to raise a red flag on her tax form. Thank you!

[DawnC]

Those amounts are deductible, and they go on Schedule A, which TurboTax will complete for you.  Just enter the amounts she paid for nursing services in the medical expenses section.  Search for Schedule A and use the jump to link, and you will go right to the first medical question - RX costs, then proceed through the screens.  

From Pub 502 - 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.

[Opus 17]

Your mother can deduct medical expenses on her tax return (I assume someone is helping her with that).  Medical expenses include nursing care.  Nursing care does not have to be provided by a nurse, but needs to be the kind of care usually provided by a nurse, such as assistance with toileting, bathing, feeding, wound care, taking medication, and so on.  If the aide also provides non-nursing services, like companionship, meal prep, cleaning, and so on, those expenses are not deductible, and you will have to allocate the expenses accordingly.  It sounds like the aide company has given you that information.

Other medical expenses your mother might have include co-pays for doctor visits and medications, and her Medicare insurance premiums that may be deducted from her social security check.  There is no special risk to deducting medical expenses.  However, the actual tax benefit will depend on her overall income and other itemized deductions, such as mortgage interest, property taxes, state income taxes, and gifts to charity. 

[Mike9241]

red flags are always possible, but you have the documentation to back up the deduction, so I wouldn't worry about the large medical expense deduction.