Have a Tax Question? Ask a Tax Expert
The outside caregivers would likely qualify as an itemized medical expense deduction if your mother is your dependent. Medical expenses are deductible on Schedule A to the extent that they exceed 10% of your AGI.
Your time is not deductible, but you can claim mileage to and from your mother's residence as a medical expense.
Mother is not my dependent. Can she deduct these expenses for caregiving on her own return
Strictly speaking, no. The IRS requires the deduction to be taken by the person who pays and medical expenses for a third party are not deductions to you. However, if you transfer the funds to your mother and she pays, then she could deduct the expenses. Even if these two steps occur simultaneously, the end result must be that your mother's check or credit card is the one paying the caregiver.
You can treat the payments to her as either a loan or a gift. If a gift, then you would need a gift tax return for amounts exceeding the tax free gift limit during year (presently $14k).
She is the one who pays. Always has been. These funds to pay the caregivers come out of her checkbook. So I can deduct these expenses on her tax return. Any limits on the deduction?
There is a 10% of AGI floor on medical expenses, but no limit.
So amounts over the floor which total some $25000 per year could be listed as an itemized deduction for these caregivers that giver her care everyday?
Yes- the amount over the 10% of AGI floor would be listed as an itemized deduction on Schedule A.
another question.... my mother also pays the property taxes on a property formerly owned by her father. The estate is unsettled at this point. Could she also take deductions for expenses paid to maintain this property.
Your mother can deduct payment of these taxes as long as she is a beneficiary of the estate.