The cost of medical care in a nursing home, home for the aged, or similar institution is a medical expense. This includes the cost of meals and lodging in the home if the principal reason for being there is to get medical care. Do not include the cost of meals and lodging if the reason for being in the home is personal, however, include in medical expenses the part of the cost that is for medical or nursing care.
You can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. These services can be provided in your home or another care facility.
Treatment at a health institute, if prescribed by a physician, can be a deductible medical expense. The treatment must be necessary to alleviate a physical or mental defect or illness.
Capital improvements made to accommodate a home for a disabled condition, do not usually increase the value of the home and the cost can be included in full as medical expenses. You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care.
You can include in medical expenses the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability. For example, you can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair.
Did you know that transportation to another city, if the trip is primarily for, and essential to, receiving medical services, can be a deductible medical expense? You may be able to include transportation costs or mileage for your personal car. Lodging along the way can be deductible up to $50 for each night for each person. You can also include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals are not included.
As with all medical expenses:
- You can claim medical expenses for yourself, spouse and dependents who live with you.
- Your parents CAN be your dependent if you provide more than half of their support.
- Long Term Care Insurance premiums are deductible.
- You can deduct the expenses in the year that you paid, regardless of when the services were provided.
These are just some examples of costly and often overlooked deductible medical expenses. Need help? Give us a call we can help you determine what expenses are deductible and if this can reduce your tax bill.