Tax Deduction - Nursing home?

[runwad]

Hi All,

Just sitting here with FIL watching football. MIL is in nursing home and FIL just asked can I deduct that off my taxes? Uh, I don't know. I'd think not but not 100%. I know he can deduct her adult day care she was in this year but what about nursing home care, is there any deduction that can be taken for that? Is it a medical expense? We are in Ohio.

Thanks!!

 

[meriface11]

there's an IRS cap (i think $5K) for elder care, so if you are already deducting day care, not sure that it matters

 

[clh2]

My grandma passed away many years ago - maybe 13 or so, so take this advice witha grain of salt - as tax laws change from year to year.

My grandpa was able to deduct my grandmothers nursing home expenses - to the extent that the expenses exceeded 7.5% of their income. Their income that year was primarily from 401K money that was taxable. I think - but am not positive - that my grandpa cashed in "extra 401K funds" that year - since he had the nursing home expenses to deduct on his taxes (i.e. on the Schedule A).

My grandpa (at the advice of my dad) was working with an "elder law/estate planning" individual, and - I would really recommend doing this. It is expensive planning -but well worth the money.

 

[Cheshire Figment]

As long as the home provides "skilled nursing care" and the expenses are bundled to a monthly fee, it would be included in your medical expenses provided you are paying these expenses.

Start off with http://www.irs.gov/pub/irs-pdf/p502.pdf where on Page 4 it describes who you can deduct for and Page 12 discusses Nursing Homes.

And, of course, it would be subject to the 7.5% of AGI floor as all medical expenses. Note my link is to the 2009 piblication, the 2010 is not out yet but there have been no significant changes in the rules.

Mike (CPA Retired)

 

[silmarg]

As long as the home provides "skilled nursing care" and the expenses are bundled to a monthly fee, it would be included in your medical expenses provided you are paying these expenses.

Start off with http://www.irs.gov/pub/irs-pdf/p502.pdf where on Page 4 it describes who you can deduct for and Page 12 discusses Nursing Homes.

And, of course, it would be subject to the 7.5% of AGI floor as all medical expenses. Note my link is to the 2009 piblication, the 2010 is not out yet but there have been no significant changes in the rules.

Mike (CPA Retired)

I am a tax practioner... and Cheshire Figment has it right.

FIL can deduct if its... Skilled Care.... amount in excess of 7.5% of AGI

 

[scrapquitler]

There might be some special rule for nursing home care, but the general rule for medical expenses is that IF you itemize, you can deduct the portion of medical expenses that exceed 7% of your gross income ( at least I THINK that's the percentage I remember)

 

[Suz D]

For anyone who is reading this and thinking, "my family member isn't in a nursing home but IS in assisted living" there is also a tax benefit to that. When my dad was in Assisted Living, they provided him with a document for tax purposes that told the percentage of his living expenses that were "medical". That way he could deduct that portion of his expenses (keeping in mind the percentage requirements for itemizing medical expenses).

 

[runwad]

Thanks for all the responses everyone. MIL has altzheimers so it doesn't sound like she would qualify. I don't think that would be considered skilled care.

 

[minnie1928]

Thanks for all the responses everyone. MIL has altzheimers so it doesn't sound like she would qualify. I don't think that would be considered skilled care.

I wouldn't be so sure about that...my dad's in a nursing home (dementia & parkinson's) and we deduct it from mom's taxes (have been for years). I would say it's more likely that you (or dad) CAN deduct it. She is receiving skilled care in a nursing facility most likely because she can't care for herself and requires 24 hour care to ensure that she is safe, is fed, takes her medications timely, is helped with personal hygiene, etc.. That would qualify as skilled care.

 

[clh2]

I wouldn't be so sure about that...my dad's in a nursing home (dementia & parkinson's) and we deduct it from mom's taxes (have been for years). I would say it's more likely that you (or dad) CAN deduct it. She is receiving skilled care in a nursing facility most likely because she can't care for herself and requires 24 hour care to ensure that she is safe, is fed, takes her medications timely, is helped with personal hygiene, etc.. That would qualify as skilled care.

I agree with this. My grandma was in a nursing home for Alzheimer's. At the time she was there - it was considered skilled nursing care. I also have a SIL who is a nurse manager in an Alzheimer's unit. My SIL would also argue the skilled care aspect of caring for Alzheimer's patients. It is very difficult work.

 

[marius97]

Thanks for all the responses everyone. MIL has altzheimers so it doesn't sound like she would qualify. I don't think that would be considered skilled care.

Just a lay person's opinion, but I would think that what would not be skilled care is if they lived at something that is more retirment home than nursing home. Retirement home would be a situation where they just help with things like cleaning the apartment and check on your well being. Skilled nursing would be where they are actually doing nursing things for you like giving meds, personal hygeine, etc.

 

[minnie1928]

Just a lay person's opinion, but I would think that what would not be skilled care is if they lived at something that is more retirment home than nursing home. Retirement home would be a situation where they just help with things like cleaning the apartment and check on your well being. Skilled nursing would be where they are actually doing nursing things for you like giving meds, personal hygeine, etc.

I agree, if it's a retirement home, but someone with full blown Alzheimers would require skilled care. An Alzheimers patient most likely can not remember to take their meds (quantity or timing), or remember where the meds are kept. Not too mention meals and personal care.

My dad's nursing home has an Alzheimer's wing that is secure because many of the patients don't realize where they are and they often try to leave to go "home" or to "work" or whatever.

Obviously, Alzheimers has varying degrees of severity and from what I've experienced it only gets worse. My guess is that if the OPs MIL is in a nursing home, then she's advanced far enough that it would definitely be a skilled care situation.

 

[Suz D]

My dad was in assisted living (AL) with dementia/AD (Alzheimers disease) until he got too confused to be in AL anymore. He then moved to an AL with memory care and has recently moved to the full out locked Alzheimer's unit within the AL.

As I stated before, there is a portion of the expense for AL that is considered medical and it is deductible (the resident receives help with medical care-giving meds, monitoring general health, arranging for therapy etc.)

If the OP's MIL is in a true nursing home I would think that would qualify (it's called a "nursing home" for a reason). We're assuming that now that Dad is in the full out AD unit, the full amount of his care after the 7.5% (or whatever it will be for 2010) will be deductible.