When can senior care be a tax deduction

In many households, some become the care provider of their elderly parents, spouses, and others who become incapable of caring for themselves. Whether you are the sole caregiver or you hire outside help, many of the expenses associated with this care can be deducted from your taxes. 

In most households, the elderly individual is moved into a senior home out of medical necessity or when they are unable to safely live on their own. In these cases the costs of the facility, meals, and medical care are tax-deductible. In other cases the individual will choose to move into a senior home in order to simplify their living arrangements, access activities, or for financial reasons. In these situations, only necessary medical care would be deductible - the costs of the living arrangements fall into the same category as if they were still living at home and are not deductible.

Other families hire live-in employees or day help to provide suitable care at the elderly individual’s own home. The caregiver must provide the same service as a regular nurse (bathing, feeding, providing medication, etc) for it to be deducted. But household services (pest control, utilities, etc.) must be separated and cannot be charged as a deductible medical expense.  

Other medical expenses you can deduct:

• Transportation to medical appointments
• Hearing aids and eyeglass
• Out of pocket medical expenses from surgeries and procedures
• Changes in your home, for example adding ramps or modifications to the bathroom

Contact All About Numbers for more information about determining which expenses are deductible, setting up a household payroll and any additional details.