Long Term Care Deductions

[Annmarie63]

My mother lives in a long-term care facility.  She needs full care as she has Alzheimer's and Dementia and is unable to care for herself in any way.  Is the full amount that we pay each month for her to live in this facility fully deductible?  If so, was this a tax rule change for 2021 or was the full amount deductible in prior years?

[ColeenD3]

Yes, in certain instances 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.

To determine if your father qualifies as your dependent for this purpose, refer to Whose Medical Expenses Can You Include and Nursing Home in Publication 502, Medical and Dental Expenses.

Nursing homes

• Deduct medical expenses on Schedule A (Form 1040), Itemized Deductions.
• The total of all allowable medical expenses must be reduced by 7.5% of your adjusted gross income.

[Annmarie63]

Can you answer one more question - was this a change in tax law for 2021 or was the ability to deduct the full cost of long-term care (in certain situations) available in prior tax years?

[ErnieS0]

The ability to deduct the full cost of qualifying long-term care did not change in 2021.

If your mother was in a long-term care facility primarily for medical care, you can amend previously filed tax returns to claim the full cost (including meals and lodging) is deductible as a medical expense.

For instructions see How to amend (change or correct) a return you've already filed.

[Annmarie63]

I have a different question.  I finished the return and e-filed thru Turbotax.  My return was rejected because it says the AGI I entered is incorrect.  But it's not - it matches what was on my 2020 return.  If I filed last year by mail, would that cause an issue?

[ChondelLO]

If you mailed your return last year and it wasn't processed by December 10, 2021, then enter “0” for your 2020 AGI. Please visit the Help Article below for assistance with fixing the rejected return.

How do I fix e-file reject IND-031-04 or IND-032-04?