Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Ask the Experts about self-employment >> Event happening NOW!
cancel
Showing results for 
Search instead for 
Did you mean: 
user2010
New Member

What content should be in a Doctor's prescription for something that is deductible?

(1) There are a number of expenses recognized as deductible when prescribed by a Doctor. What should be the content of a written prescription, signed by a Doctor, for these expenses?

(2) An elderly taxpayer has a need for in-home nurse or assistant, just to stand up and use a walker to get from room to room, to use the rest room, to get dressed, etc.. (This nurse or assistant is not a maid who does routine housekeeping.)  What content should be stated in a Doctor's note for these expenses to be deductible?

1 Best answer

Accepted Solutions
FaithY
New Member

What content should be in a Doctor's prescription for something that is deductible?

(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.

View solution in original post

3 Replies
SweetieJean
Level 15

What content should be in a Doctor's prescription for something that is deductible?

It would appear you are a tax preparer. If so, understand that TurboTax can not be used by paid tax preparers
FaithY
New Member

What content should be in a Doctor's prescription for something that is deductible?

(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.

View solution in original post

user2010
New Member

What content should be in a Doctor's prescription for something that is deductible?

I am not a paid tax preparer

Dynamic AdsDynamic Ads
Privacy Settings
v