Medical Expenses - Publication 502

[mitchden1]

I read IRS Publication 502 and my dad clearly meets the definition of being chronically ill. He's bedridden and although he's mentally sharp, he cannot move his legs. I'm paying for the assisted living facility where he has an apartment and 24/7 aides and nurses. He's needs oral morphine for pain every 6 hours and wears a fentanyl patch. Because of his pain, he recently went on hospice.

Because of the very large medical expenses that he's paying, he will itemize and his tax liability will be zero. He was making quarterly estimated taxes and he will get that refunded. Here is my question:

Since the actual medical expenses will be so much more than "necessary" for a zero tax liability, should I lower the medical expenses I show on Schedule A so that his tax liability is zero? Also, is there a place on the Form to explain why the medical expenses are so large? I want to avoid potentially being audited.

Thank you in advance

[Bsch4477]

You can record the actual medical expenses or report fewer, it doesn’t matter. As long as you have the expenses documented don’t worry about an audit. There is no field for an explanation and it’s not necessary. 

[mitchden1]

Thank you. Being proactive, I should get the documentation now. I have the monthly invoices from the assisted living facility. The aides and nurses complete a weekly time sheet and I pay them with dad's personal checks. I have copies of their signed timesheets and the checks. Is there a specific list of what documents would be required in anticipation of an audit? Since my dad has a small long-term care policy, the insurance company required a "plan of care" from the doctor.

[Bsch4477]

A list of payments is sufficient. Of course you must subtract any reimbursement from his costs. 

[Mike9241]

the invoices, time sheets and canceled checks would be sufficient.   all you need is documentation to prove enough medical expenses to zero out his tax liability.