Can home care be tax deductible?

According to IRS Publication 502, in general, only medical services provided by a home care worker can be deducted. Examples of qualifying services include administering medications, caring for wounds, and helping with long-term management of diseases and conditions. If you pay for home care services at home, the IRS may allow you to deduct the cost of your annual taxes. The IRS does allow citizens to deduct certain medical deductions to cover the cost of doctors, therapists, surgeons, psychiatrists and prescription drugs.

The IRS also allows people to deduct the cost of hospitalizations and nursing home care. Yes, in certain cases, nursing home expenses are deductible medical expenses. The option to claim tax deductions as a home health worker generally depends on your employment situation. Fortunately, you can deduct some or all of this expense and reduce the amount of dollars you send to Uncle Sam during tax season.

When a loved one needs additional medical support due to old age or illness, families face several care options. The insurance premiums you pay to cover the cost of health care, at home or otherwise, can also be itemized and deducted from your taxes. Unlike the Child Tax Credit or Credit for Other Dependents, which provide a tax exemption based on the existence of a qualifying child or other dependent, the Child and Dependent Care Credit is based on the money you spend to care for that person or persons. A person suffers from a chronic illness if, within the preceding 12 months, a licensed health professional certifies that the person meets any of the following descriptions.

Payments made with an HSA or FSA cannot be deducted as medical expenses from your taxes, but they can help make these expenses more affordable before filing season arrives. With MileIQ, home healthcare workers can automatically track personal and business miles each week without being distracted from their daily tasks. When you hire a caregiver to help you bathe, dress, eat, get in and out of bed, chair, etc. Flexible spending and health savings accounts, often abbreviated as FSA and HSA, respectively, allow you to save money before taxes are deducted from various out-of-pocket medical expenses.

Interestingly, given the name, this tax credit doesn't require your loved one to qualify as your dependent under certain circumstances. Caring for someone with memory loss, for their health and safety, is also a deductible medical expense. Add the costs in the Deductions and Credits section of TurboTax, then medical expenses and, finally, medical expenses. Below, we outline the basics of tax deductions for home healthcare workers, including how you can use a mileage tracking app to secure significant savings on your return.

If you modify your home to meet your medical needs, those of your spouse or dependent, the cost of doing so may be deducted from your taxes, as long as the modifications do not increase the resale value of your home. For example, if you spend 40 percent of your time on the phone for customer service, you can deduct 40 percent of your phone bill on your tax return.

Michele Maslen
Michele Maslen

Caregiver forever, heart for seniors, loves music, dancing, and putting smiles on people's faces.