My sister is my caregiver. I recieve aid and attendance from the VA to pay her. Now when it is time to file taxes it is an exorbitant amount she is going to have to pay. On days when my health is really bad she takes me to her house to stay. Can she use the usual cost of a room per night plus meals as a deduction?
jmitz, You issue a 1099 to her at the end of the year for whatever you paid her. She declares this on her taxes. If you pay her for meals and room on top of that, she declares that too. She sounds like she's making a lot of money off of you. She needs to talk to tax consultant, either she is a paid caregiver or you are dependent, but you can't be both at the same time.
My husband and I care Guardians for his mothe and her sister. They are our dependent. We claim them on our taxes as dependents. We claim their medical expenses, adult day care, medical travel expenses, and anything related to their care. Yes, assited living is also deductable as a medical expense if they meet the threee requirements established by the IRS. The 3 requirements are: 1) They're in assisted living because they have a terminal/uncureable disease, 2) for their safety, and 3) they cannot take care of daily living ie: bathing, dressing, toileting, cooking. . .
Hope this information helps.