Are Nursing Home costs for a parent deductible on my Federal Taxes

[Lot249]

What is the name of your state? New Jersey

My Mother will be entering a nursing home very soon. Up to now, we have been able to have her at home but it has become clear she needs around the clock care. She has no medical issues requiring medication. To date, her SSI and savings have covered all her expenses, but she basically is outliving her resources. She will eventually fully depend on Medicaid to pay for nursing care. Over the past 3 years, I have subsidized most of her food expenses but have never tried to claim these costs as a deduction on my state and/or federal tax reports. Once she is in a nursing home, food will be provided but some part of the overall nursing care may fall on me to provide. So, the question is can some or all of the monies given to her care deductible? I should mention she is 105 and 6 months. Thank you for any information you can provide.

 

[LdiJ]

Any portion of the nursing home costs that are medical in nature (not the rent portion) can be deducted by the payer (subject to the 10% of AGI limitation). However if you are not paying them, you cannot deduct them.

 

[commentator]

I think you need to have a long talk with the social worker of whatever nursing home that your mother is about to enter. When a person in a facility goes from self-pay to Medicaid paid care, the quality of care does not change. You speak as though you are currently using your mother's assets to pay for her care. You do that as long as it is feasible. Then when her assets are gone, Medicaid steps in, they don't come to the children demanding payment for some part of her care.

The trick I found was getting parents into a nursing home that "had a vacancy" and would accept direct referral of patients that were on Medicaid or were about to be on Medicaid. Self-payers were much easier to find placements for and at nicer facilities. Once she is in a nursing facility, she is going to be receiving a basic level of care regardless of her ability to pay. At the time you put her in a skilled nursing facility, your need to provide food, etc. is going to be limited and not considered medically necessary. Your need to provide medical assistance over and above what is provided is going to be limited. You might want to hire her a companion/sitter if your resources are unlimited, but that isn't likely going to be a covered medical expense you could deduct.

At 106, she may be outliving her resources, but I would suspect it won't be a really long term problem. I'd certainly run anything I'd paid specifically past a tax professional before I tried to claim it.

 

[adjusterjack]

can some or all of the monies given to her care deductible?

Have you looked into claiming her as a dependent on your income taxes?

Start on Page 26 of Publication 17 to see if she qualifies as a dependent.

https://www.irs.gov/pub/irs-pdf/p17.pdf

 

[Zigner]

Have you looked into claiming her as a dependent on your income taxes?

Start on Page 26 of Publication 17 to see if she qualifies as a dependent.

https://www.irs.gov/pub/irs-pdf/p17.pdf

The OP says that mom's income covers her expenses.

 

[Taxing Matters]

Have you looked into claiming her as a dependent on your income taxes?

Start on Page 26 of Publication 17 to see if she qualifies as a dependent.

https://www.irs.gov/pub/irs-pdf/p17.pdf

That publication is for 2017 returns. From 2018 through at least 2025 there are no more deductions for a dependent exemption. The medical payments the OP pays if she qualifies as a dependent would be deductible, but only to the extent that the limit is exceeded AND your total itemized deductions exceed the now much larger standard deduction, making this tough for many people to get any additional benefit from.

 

[davew9128]

That publication is for 2017 returns. From 2018 through at least 2025 there are no more deductions for a dependent exemption. The medical payments the OP pays if she qualifies as a dependent would be deductible, but only to the extent that the limit is exceeded AND your total itemized deductions exceed the now much larger standard deduction, making this tough for many people to get any additional benefit from.

While there are no more federal dependent exemptions, there is still a family tax credit for non-child dependents.

 

[LdiJ]

While there are no more federal dependent exemptions, there is still a family tax credit for non-child dependents.

I don't believe that its called a family tax credit, but yes, there is a $500.00 credit for all dependents over age 17 or older.

 

[Zigner]

How would a person whose income covers all their expenses qualify as someone else's dependent?

 

[LdiJ]

How would a person whose income covers all their expenses qualify as someone else's dependent?

They wouldn't. I was merely agreeing that there is a small credit for adult dependents.

 

[FlyingRon]

Officially it's "Credit for Other Dependents" or colloquially the family credit.

 

[LdiJ]

Officially it's "Credit for Other Dependents" or colloquially the family credit.

I have never heard the term "family credit" but that doesn't mean that some tax professionals somewhere are not calling it that.

 

[FlyingRon]

Well, since it is new for 2018, it's probably a regional thing (or working its way around).

 

[Lot249]

My deepest thanks to all of you for taking the time to respond to my query. After reading the suggested tax publications regarding who and how dependents are defined, I think I’ll leave the issue of seeking tax relief for another day. Presently, my main focus is in finding a nursing home who will accept her directly as a Medicaid client. Once again, thanks to all for your input.