Nursing home deduction

[tware]

My mother suffered a back injury and entered a nursing home for rehabilitation and care in late 2019 and all of 2020. She has required medication, therapy, and the highest level of care.  She is also wheelchair bound.  The facility issued a letter stating that 36% of payments made can be attributable to nursing care.  It's my belief that she is in the nursing home primarily for medical care due to her chronic back problem and other health related issues.  Can I claim a larger medical deduction on her tax return?

[ErnieS0 · Accepted solution]

You can, but you may have an issue if the IRS audits your return. Your deduction will conflict with the letter from the nursing home, who are the presumed experts. 

I suggest speaking with someone at the home. It's possible they sent you a standard letter and would be willing to change it. If you were audited you would need something to support your position, such as a statement from your mother's doctor declaring that the primary reason she is in the home is for medical care. It would be up to the IRS to decide.

The IRS allows you to deduct nursing home expenses are deductible medical expenses.

• If you, your spouse, or your dependent is in a nursing home primarily for medical care, then the entire nursing home cost (including meals and lodging) is deductible as a medical expense.
• If that individual is in a home primarily for non-medical reasons, then only the cost of the actual medical care is deductible as a medical expense, not the cost of the meals and lodging.

See: Medical, Nursing Home, Special Care Expenses

[svillemez]

My Mother is in nursing home.  She cannot walk without someone holding her and only for a few feet.  Her memory is poor and staff gives her medications several times of day.  She has an ileostomy and staff has to take care of multiple times a day.  She is given physical therapy. Would this meet the criteria as medical for deduction of nursing home charges?

[DianeW777]

Yes you can use medical expenses deduction on your mother's tax return.  A nursing home is a legitimate medical expense as well as any outside expenses for doctors and/or medication if applicable. Your mother is not capable of self care. Medical expenses are allowed as an itemized deduction if you can use that.  The amount of the deduction is the excess over 7.5% of your federal adjusted gross income (AGI).

More importantly is whether you are filing on her behalf or whether you are trying to claim her as a dependent and deduct the expenses. It was not clear to me so here are a few more pieces of information.

• IRS FAQ on Nursing Home medical expenses
• Qualified Relative Dependent 

Qualifying relative:

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a US citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,700 in 2023.
• You provided more than half of their financial support.

@svillemez