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If my dad requires 24/7 care at home, can he deduct any caregiver costs off his taxes?

My father is 94 and has moderate dementia. His doctor requires he has 24/7 care at this point in his life. Out of his resources, this is being taken care of so he can remain in his home as long as possible. Are there any deductions for the caregiver expense that can be deducted from his taxes? We pay the caregiver agency a set price per day for 24/7 care and the caregiver sleeps, eats, etc. in his home. He apys for ALL the food eaten for both he and caregiver.
Status: Open    Jan 27, 2015 - 08:52 AM

Dementia, Finance

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Feb 03, 2015 - 07:48 AM

Without knowing your father's personal income tax situation, I can only provide some basic information on the deductibility of caregiver expenses. It sounds like the care is prescribed by the physician mainly for maintenance and personal care services. For these qualified long-term care services, a person 65 or over can itemize the caregiver expense as a medical expense but only the portion of the cost that exceeds 7.5% of their adjusted gross income. After December 31, 2016, it would be the amount that exceeds 10% of their adjusted gross income. Depending on how long he has been receiving care, he may not have reached the threshold for deducting the cost. The food purchased for the home that the caregiver shares with your father would not be deductible.

I would recommend consulting with a tax professional in your area so they can look at all of your father's income and expenses and recommend the best strategy for reducing his tax burden.

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