Is the cost of self pay for a caregiver through an agency tax deductible with federal income tax?

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It is my husband who is ill and housebound. I still work fulltime. He is Medicare age and currently under hospice care too.

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Thank you all for your responses to my question. I contacted a tax consultant who said yes, caregiver expenses are tax deductible. I have not gotten into the details yet and know there are certain criteria to be met. I hired the caregiver through an agency who takes care of the caregiver's pay and whatever else that involves. I just pay the hourly rate. I work fulltime and my husband is retired and not able to care for himself, must be bathed, fed, & etc. The caregiver does this. Tax consultant said if caregiver performs these functions, can get tax deduction. Need agency's tax ID# and itemized statement of what you paid them. I asked the agency for this.
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wonder if that's what the aging office that called yesterday was talking about when they asked if we had a caregiver? hm...
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If the caregiver lives in the same residence and is paid by a medicaid program through a homecare agency, the wages are excludable as a 'vendor' payment. IRS Bulletin 2014-7
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thanks, CatyRay, sounds like was a wonderful move on their part to have invested in rental property - seems to have been a boon to a lot; think my uncle had some, tend to forget but my grandparents had some at one time; my other uncle had his farm land - well, both of them did - that they leased out - though not sure they sold either - but my dad was never one to do that type thing - those were relatives on my mom's side - however, the one uncle on my dad's side, his wife had that type of caregiving but as far as I knew they never had rental property, so not sure how they did it - just know glad my dad was a vet and hub's aunt and uncle, glad he was as well, though they're caught in the cracks - so, again, thanks, and glad they made that move
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How can Mom afford $80K in home health care? My Dad sold a rental property shortly before he died. The proceeds were put into a joint account, which Mom draws from to pay for CNAs. If Mom went to a NH, she'd be paying about the same amount daily ($270) as a private care patient as for 13 hrs of CNAs in her home. I live 400 miles away, and visit for 3-7 days almost every month. She then has the CNA for 3 hours in the am to get her up, showered, dressed, and served breakfast while I go out and jog and/or shop. Mom pays me for the hours I save her on my visits. It's not easy. I couldn't do it 24/7/365.
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Yes, one does provide care to parents out of love; my lawyer drew up an agreement that my parent would pay me for certain care. It's pretty specific. I haven't used it yet to actually collect money because my dad has needed some outside care which is very costly and I'd rather see his money go to that. However, with such an agreement not only can you be paid to provide care but your parent can use the tax deduction.Of course, if you collect the pay you and your employer (your parent) will have to pay the employment taxes. It's frankly a trade-off to find the best care (you) and have a tax deduction if it makes financial sense. It took me a long time to find this out and I'm not convinced that the work it takes to make this function legally is worth it. It is an option and as with all things, depends on your situation.
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May I ask what kind of income - or assets - you all have that you're able to spend $50 to $80K/yr. on caregiving? nobody I know can do that, at least not the ones I'm working with
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I don't believe it is tax deductible. You provide care for your parents out of love.
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Desert192, liability coverage for injuries on someone's property may protect the homeowner and provide coverage for an invitee, but not an employee, which a caregiver is.

I raised this issue with my insurance carrier when we were considering hiring someone directly to do work on my father's house. I was advised that employees are NOT covered by homeowner's insurance and liability provisions. Further, that any homeowner hiring someone not affiliated with any agency providing coverage would be required to get a commercial workers' comp policy, at a high cost.

The comp policy is a commercial line; homeowners is a personal line coverage.
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My tax accountant said that the caregiver is a medical expense and I have kept track of attends diapers, wipes, etc. The medical deduction is a % of our income which was raised last year. Means you have to have a certain amount to be able to write it off. Is expensive so hope for the best.
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