Can i deduct caregiver expenses

As a caregiver, you likely pay for some care costs out-of-pocket. Because of this, you may be eligible for tax credits and deductions. Tax rules are complex and can change.

You may be eligible to deduct medical expenses from the taxes that you pay for yourself, your spouse and your dependents. Medical expenses include medical fees for diagnosis, prevention of disease, cure, hospital services, some long-term care and nursing services, and insurance premium payments for accident and health insurance. Your AGI is found on form , line 8b. If you paid someone to care for a child or a dependent so you could work or look for work, you may be able to reduce your tax by claiming the Child and Department Care Credit on your federal income tax return.

A trained nurse performs at-home nursing services. Examples of such medical services include but are not limited to:. Nurses may also provide household services such as cleaning, doing laundry, and grocery shopping. Divide the amount of wages paid for those services from the amount spent on actual in-home nursing care before claiming a deduction. In some situations, household services that are provided on behalf of the disabled individual so you can work outside the home may qualify you for a dependent care credit.

If you feed your at-home attendant or otherwise pay for their meals, you may include that cost as part of your medical expense deduction. First, divide the cost of meals among all household members to determine the price of food consumed by the attendant and incorporate that with your itemized medical expense deduction.

In most cases, caregivers and private nurses can be considered household employees. If this applies to your in-home attendant and if you pay Medicare tax, state employment tax, social security tax, or state or federal unemployment tax on their behalf, these costs may qualify as a medical expense deduction.

IRS Pub. If you modify your home to accommodate the medical needs of yourself, your spouse, or your dependent, the cost of doing so may be deducted from your taxes as long as the modifications don't add to the resale value of your home.

According to the IRS website, the following are some of the home modifications that are considered medical in nature:. Gear such as TDD and TTY that allows a hearing impaired or speech impaired person to communicate over a landline may be deducted as a medical expense. The cost of repairing such equipment may also be claimed as a medical deduction. You can only deduct medical expenses that exceed 7. For larger expenses, only the portion over 7.

For this specific type of deduction, you may also be able to include some of the medical expenses of a parent or grandparent who doesn't qualify as a dependent due to income or tax filing status.

IRS Publication describes who specifically qualifies for medical deductions and what items are covered. The person you are claiming must fit specific criteria, but they do not have to be a relative.

A family friend or other loved one may fit the criteria for you to claim the caregiver tax credit. Some of the qualifying criteria are:. The rules and qualifications for claiming this credit are different from the Child Tax Credit. The person must have lived with you for 6 months or more of the preceding year and must be deemed physically or mentally incapable of self-care. To claim this credit, you must work, be a student or be disabled, since the credit is designed to pay for care you cannot personally provide.

If you are married, your spouse must also meet one of these qualifications.