Are we able to do a medical deduction on Mom's taxes for her out of pocket expenses?

Kannie, don't forget if you are hiring caregivers privately and not through an Agency, you will need to get a workman's comp rider on the homeowner's insurance. That is for if any of the caregivers get hurt on the job. I don't know if that is deductible or not, you will need to check with the IRS or with an Accountant.

Hmmm, I hope I haven't been making illegal deductions all these years! I provide moms accountant with the numbers, he provides the laws and does the taxes. We have used an agency for in home health care - two different ones over the years. The accountant said if they are performing medical functions - taking and recording blood pressure, giving medication, helping with transfers etc - that if it weren't for them my parents would have been in a facility - that we could deduct a portion of their cost. No doctors orders necessary. He also said the same held true for a portion of their rent in AL. I hope he's right! Nothing like a few IRS penelties and intrest - grrrr!

You can only deduct the medically ordered home care. Ask her MD to write a letter saying she needs aides and why. Of course you have to set up payroll for the aides too.