Most of us are aware that some tax breaks and deductions are available to offset the cost of In Home Care for our loved ones. Don't overlook a possible tax deduction that can help cut costs. Before you claim the deduction however, make certain that your specific costs meet the criteria. Here is an overview on some things you can deduct off your taxes for In Home Care.
In short, any costs associated with assistance in the "activities of daily living" or "ADLs" can be counted as MEDICAL EXPENSES and deducted if they add up to 7.5% of an individual's adjusted gross income, and only to individual's who itemize. How will you determine if your specific scenario meets this criteria? Ask yourself the following questions...
Does your loved one receive assistance with "ADLs"? These include help with bathing, dressing/grooming, assistance with toilet needs, eating, continence care and transferring (in/out of bed or chair).Help with errands, housework, and cooking are not qualifying activities.
Is the care required due to chronic illness? The term" Chronically Ill" is applied to persons who are unable to perform at least 2 of the 6 activities of daily living. Additionally, someone who is cognitively impaired and requires supervision will also qualify as chronically ill. It is critical that a licensed health care provider evaluate and qualify the individual as chronically ill. This health care professional must prescribe the care and monitor the patient. No tax benefit is applied if a family arranges for care absent a physician's order.
If you meet the qualifications, here are some of the medical expenses you would be able to deduct:
Privately hired In Home Care expense
Rent for a larger apartment to house a live-in caregiver
Renovations to make your home accessible/bathroom modifications
Insurance premiums on long-term care insurance
Medicare Part D premiums
Other out of pocket medical expense
Travel expense to and from medical treatment
If you have medical or long-term care insurance that covers these expenses, you can't use the insurance coverage and get a deduction as well. Be sure to have careful advance planning with a qualified tax professional as tax laws change. It pays to study up on the tax laws now to plan for the future. This blog is not intended to replace tax advice from either the IRS or your financial advisor. We suggest that you check out IRS Publication502,Medicaland Dental Expenses.
If the challenges of family and career are making life overwhelming and difficult to care for a loved one in need of assistance, we can help. Today’s families have very busy lifestyles so many times family members want to help and in many cases try to help but generally it is only a matter of time before it all becomes overwhelming trying to juggle too many tasks at one time. For most just knowing that companies like ours are here when you need support and an extra set of caring hands make the process less stressful and smooth.
Should a loved one need help, call us today 770-442-8664!
Easy Living Services, Inc.
Providing Home Care to Atlanta families since 1994