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

Check with your accountant. Do you have a doctor's order stating that this care is necessary? Seems then it would become an eligible medical expense.

Yes it is deductible but you have to report the wages paid--and pay the correct percentage of social security. And do a W9. Consult an accountant. Like hiring a nanny. I wrote my wife's care people off under medical expenses through the advice from my accountant.

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.

It is my understanding that the caregiver must be a medical professional such as a nurse or even CNA...However, that is based on no definite knowledge. Perhaps you might want to consider claiming the portion of the caregiver's time that is devoted to "nursing home" type care, such as bathing, feeding, etc., but not light housework.

Grace + Peace,

Bob

My understanding is that "caregiver cost" is not deductible on your federal or state tax return. Please let me know if others feel that the cost is deductible.

I bet it depends upon your state and the services paid for. In NC, we can't deduct a % of uncovered medical expenses like we could 2 years ago.

From what I read a caregiver is not deductible

Wouldn't the agency employing the caregiver pay the SocSec? Is Flowerpower paying wages through the agency, or paying the caregiver directly?

Didn't say agency was supplying person. Yes, they would withhold the taxes. You just right off the expense as a medical.

Yes it is deductible as a medical expense. I believe the term is "companion - caregiver" or companion-sitter. You will have to handle the payroll (taxes and withholdings, etc.)in place of an agency if you are self paying the individual. Be sure to draw up a contract specifying their duties (sitting, housekeeping, etc.).
They do not have to be a licensed health professional - but it may be to your advantage if you can find someone who is. A CNA (or someone in school to become one) might be a good choice.