(1) The prescription
from the doctor is not enough documentation for a prescription to be tax
deductible. The prescription needs to be filled and paid for by the taxpayer. Any portion of
the prescription that is reimbursed, is not deductible.
Click
here to view more information from IRS about medical deduction reimbursements. Scroll and click on the link that says "How Do You Treat Reimbursements"
(2) If a taxpayer
has an in home nurse, a doctor's note alone is not enough to document
deductible nursing expenses for a tax deduction, but it can be used in addition
to documentation that shows the nursing services were paid for by the taxpayer.
If the taxpayer is reimbursed, the reimbursed portion is not tax
deductible. If the taxpayer wants a doctor's note in their tax file along with
the documentation for paid services, the note might say something as simple as
the nursing services are a medical necessity. Remember though, if asked by IRS, the taxpayer will need to provide documentation that shows
he or she paid for the nursing services, and that he or she didn't receive any insurance reimbursement for the nursing services.
According to Internal Revenue Service (IRS):
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.
You can also include in medical expenses part of the amount you pay for
that attendant's meals. Divide the food expense among the household members to
find the cost of the attendant's food. Then divide that cost in the same manner
as in the preceding paragraph. If you had to pay additional amounts for
household upkeep because of the attendant, you can include the extra amounts
with your medical expenses. This includes extra rent or utilities you pay
because you moved to a larger apartment to provide space for the attendant.
Employment taxes.
You can include as a
medical expense social security tax, FUTA, Medicare tax, and state employment
taxes you pay for an attendant who provides medical care. If the attendant also
provides personal and household services, you can include as a medical expense
only the amount of employment taxes paid for medical services as explained
earlier. For information on employment tax responsibilities of household
employers, see Pub. 926.
