Tax-altering life changes

[davemarsh88]

My wife entered long-term care in January 2022. We made the nursing home the rep payee for the small annuity she received as a retirement benefit. However, her social security payment still gets deposited directly into our checking account. I then turn around the send all but the $75 I'm allowed to hold back for her personal needs to the nursing home to pay for our share of her care expenses. How do I declare this change on our joint 2022 tax return?

[Bsch4477]

Assuming that you file jointly the amounts paid to the nursing home are a medical deduction if you itemize. Only an amount of total medical expenses greater than 7.5 percent of your AGI is deductible. 

[davemarsh88]

So I still have to declare all of her social security as income?

[Bsch4477]

I assume you file jointly. Include her social security along with yours on your joint return. 

[davemarsh88]

OK. That's what I was afraid of. It sounds like I should just make the nursing home the rep payee for her soc. sec. along with the retirement annuity. That way the money never comes to me and my AGI would be considerably lower. As would my tax liability. Your thoughts?