Can my father claim what he pays his live-in caregiver as a deduction on his taxes?

Asked by MarySalma  |  May 30, 2011

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Carol Bradley Bursack, Jun 1, 2011

Over the span of two decades author, columnist and speaker Carol Bradley Bursack cared for a neighbor and six elderly family members. Because of this experience, Bradley Bursack created a portable support group, the book "Minding Our Elders: Caregivers Share Their Personal Stories."

 

He may be able to, if a doctor has prescribed the care, however, he needs to check with a qualified CPA before he does so. I expect he can take a portion of it off, if it's medically prescribed, but not likely all of it. An expert is needed.
Good luck,
Carol

 
 

Rosanne Roge, Dec 15, 2011

Rosanne Rogé joined R.W. Rogé & Company, Inc. in January 1995. She is a graduate of C.W. Post - Long Island University. Ms. Rogé is certified by The Certified Financial Planners Board of Standards to use the professional certifications CFP and Certified Financial Planner. She is also a Certified Senior Advisor (CSA).

 

I would recommend that you check IRS Pub 554, Itemized Deductions for Medical and Dental Expenses; in partcular Nursing Services and Household Help. These two areas define the specifics that must be met for the deduction. Also, if the individual's services are retained through an agency, I would check with them as well.

 
 

N1K2R3

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Jun 2, 2011

You mention a caregiver as a deduction. The only place on the Tax Return that I see for this type of deduction is Schedule , Line 1 under medical deductions. This entire deduction: medical, dental, insurance premiums for medical care, and drugs and medicines is subject to the 7% floor. That is 7% above your AGI.... Not an easy deduction to take.

 
 

bobO

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Jun 1, 2011

MarySalma,
If it is through an agency you can. If it is personal hire no. Just like Nursing Home care, you cannot take it off. If it is an agency, with a tax number, you can take it off as medical expense with whatever % the IRS will allow. We have done this for years with Caregivers Systems and our new 'Pay as you go' senior living system. It is good to check out these things. If it is a personal hire, check with an accountant to see, but I don't think so.

 
 

195Austin

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Jun 4, 2011

I would go with the answer Carol gave.

 
 

allshesgot

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Jun 4, 2011

Probably need to see also what arrangments he has made with the cargiver.

 
 

desert192

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Mar 21, 2012

Check with CPA for your individual circumstance -
If he needs assistance with at least 2 of 5 ADLs(Activities of Daily Living) per his Doctor - then you can deduct as medical expense subject to 7.5% of income deduction. You can go through agency, payroll the caregiver , or what we did - have caregiver sign agreement as "companion sitter" and 1099 them for amounts paid. They are responsible for their own payroll taxes under this arrangement.

 
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