You cannot deduct for something you didn't pay for.
My Mom didn't pay income tax. Most of her income was SS and a pension of about $200 a month. SS is not taxable money under a certain income level. I think its 30k. My MIL was the same way, both widows.
About IRAs, we have 2. One is my husbands the other is mine from a pension buy out. At 70 1/2 u need to start drawing out so dear old Sam can have his tax money. We didn't want to touch our IRAs so our financial planner had it set up that taxes will come out every year. We just received our 1099.
If Medicaid is paying for the nursing home, neither she nor you will get the deduction. The taxpayer has to pay the expenses. If she is not on medicaid but is private paying for nursing home (as long as it is medically required) then whoever pays it will get the deduction - you (if LO is dependent) or her. To claim her as a dependent you have to provide more than 50% of her support. If medicaid is paying the NH, it is highly doubtful that you are paying more than 50% of her costs. If you are paying it, it is likely you are.
I do what rocketjcat is doing - my mother's high medical costs are going to offset her income to get her taxable income to zero. To take it a step further, I take money out of her IRA each year as much as I can to keep her taxes at zero so that when my sister and I inherit it, we won't have to pay taxes on that portion of the IRA. If you are not financially savvy, I suggest paying someone to help you with these questions regarding your own personal situation.
This is why the OP needs an accountant. She doesn’t necessarily have to provide half of the dependents care/provide 50% financial support in order to claim the expenses she’s paying for as a tax deduction. I suggest everyone here read IRS publication 502.
The OP may be wanting to know if they themselves can claim a deduction. Because even if their parent is in a nursing home and on Medicaid, they may be able to claim their parent as a dependent and write off some of the expenses IF they themselves are paying them. But that is why the OP needs to speak to a tax professional.
If I’m understanding your question, if you LO is in a NH on Medicaid, and most of her income goes to the NH, how do you file their taxes? When I filed Moms taxes, my CPA multiplied her monthly share of cost we paid to the NH times 12, and he entered it as a Medical expense on her Itemized Deductions. Since she had income from SS and Pension that she had to claim, this Medical Deduction offset that amount and rendered her tax owed zero. I am not a tax expert so please run this past whoever you use to file your taxes.
My Mom didn't pay income tax. Most of her income was SS and a pension of about $200 a month. SS is not taxable money under a certain income level. I think its 30k. My MIL was the same way, both widows.
I do what rocketjcat is doing - my mother's high medical costs are going to offset her income to get her taxable income to zero. To take it a step further, I take money out of her IRA each year as much as I can to keep her taxes at zero so that when my sister and I inherit it, we won't have to pay taxes on that portion of the IRA. If you are not financially savvy, I suggest paying someone to help you with these questions regarding your own personal situation.
I am not a tax expert so please run this past whoever you use to file your taxes.