My mother in laws is in a memory care facility, can I claim anything on her taxes?

[domeatman]

I do my mother in laws taxes, she is in a $5700 a month facility. Can I claim anything on her taxes? She is in a memory care facility. Can I claim anything?

[AlanT222 · Accepted solution]

She may be able to deduct the portion of her medical expenses that exceed 7.5% of her adjusted gross income (AGI) for 2020.  Click here for detailed IRS guidelines.  

To deduct unreimbursed, out-of-pocket medical, dental, and vision costs on your federal return:

• You must take the itemized deduction;
• The expenses for you, your jointly-filing spouse, and your dependent(s) must exceed 7.5% of your AGI (adjusted gross income); and
• Only the portion above and beyond 7.5% of your AGI is deductible.

For example, if your AGI happens to be $100,000, you can deduct the portion of your expenses exceeding 7.5% of your AGI ($7,500). If your total expenses for the year came in at $6,000, you wouldn't be able to deduct any of it, but if they were $10,000 you could deduct the portion over and beyond $7,500, which would be $2,500 – provided you're itemizing of course.

That said, go ahead and enter all of your out-of-pocket expenses, even if you don't think they qualify as a deduction. Some states will let you deduct them on your state return even if you couldn't deduct them on your federal return. We'll figure that out for you.

Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.

Medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness. They don't include expenses that are merely beneficial to general health, such as vitamins or a vacation.

Medical expenses include the premiums you pay for insurance that covers the expenses of medical care and the amounts you pay for transportation to get medical care. Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract.