Welcome and thank you for giving me the opportunity to assist you with your tax question.
You may take these caregiver expenses as deductible medical expenses if the following criteria is met:
To be deductible, a medical expense must be paid with after-tax, out-of-pocket dollars. The expense must also be for treatment of a medical issue, not just for maintaining good health. These expenses must be in excess of 7.5% of your adjusted gross income. Of course, if the caregiver provides housekeeping, cooking or other such services, that portion is not deductible.
Publication 502 is clear in that it specifically states:
Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:Required by a chronically ill individual, and
Provided pursuant to a plan of care prescribed by a li-censed health care practitioner.
Further, ANY licensed health care practitioner can certify that your wife meets either of the following descriptions.
She is unable to perform at least two activities of daily living without substantial assistance from an-other individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence.
She requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.
Based on the information contained in your question, it would seem the in-home care in your home is deductible as a medical expense.
Please let me know if you require further information or clarification.
Thank you and best regards,
Since I already have access to the IRS Publication 520 I was looking for something beyond a few statements taken from the IRS Publication. I was hoping to see actual examples of supporting documents to validate the tax deductions like letter submitted to the IRS by doctors description the medical conditions (cognitive impairment and the corresponding plan of care ).
to put it another way if i wanted a person to supply me a chair, I would need more than bare bone description of a chair but an actual picture of chair with a diagram showing details dimensions. Your answer was a bare bone IRS description lacking an actual example of a real letter from a doctor nor a real world plan of care ( the diagram showing details). To be fair the detailed answer would require more research on your part and in turn a higher level of compensation .... if you are able to supply the details and or examples I will be willing go up to $60, but as it stands now your answer falls short of what I was hoping to see.
Internal Revenue Service
(Appropriate Service Center)
Regarding: Patient Name
Date of Birth
Social Security Number
Dear Sir or Madam:
I am writing this letter to confirm the necessity of Home Health Care for my patient [name of patient], who has the following diagnoses relevant to this service: [list diagnoses]
This service is medically necessary for the following reasons: [list the reasons that you outlined above].
It will, or is reasonably expected to, prevent future injury, and to provide assistance to the patient in areas where she is unable to care for herself since the onset of this illness, condition, or disability. [List potential problems and the benefits of the health care provider]
It will, or is reasonably expected to, reduce or ameliorate the physical, mental, or developmental effects of an illness, injury, or disability. [Please provide details]
It will assist the individual to achieve or maintain maximum functional capacity in performing daily activities, taking into account both the functional capacity of the individual and those functional capacities that are appropriate for individuals of the same age. It will also reduce the chance of further injury and note the progression of the illness that might otherwise not be observed. [Please provide details.]
Please let me know if you require additional information from my records.