A Closer Look at Some Tax Deductions on Senior Care

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pen, glasses and calculator on a tax form in Dallas, TX

Medical expenses form a significant part of an average elderly US citizen’s yearly expenses. Considering the fact that the elderly folks have limited income, IRS allows the elderly to deduct their medical and assisted living expenses from their taxes, thereby helping them keep their medical expenses, minimal. In some cases, the IRS also allows family caregivers of elderly people to claim tax deduction for expenditures made by them towards caring for an elderly loved one. To get a clear picture of what medical expenses one can claim and what is it that qualifies them to claim the deductions, let’s take a closer look at some of the key tax deductions for senior care.

Medical Expenses

According to the IRS,  “medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of diseases, and the costs for treatments affecting any part or function of the body.” Whether you are a senior citizen paying your own medical bills or a caregiver paying for the medical expenses of an elderly loved one, you can claim deductions for a range of medical expenses such as dental treatments, eye surgery, ambulance, health insurance premiums, home care, and more. To get a list of allowable medical expenses, see IRS Publication 502 at IRS’s official website.

Note – Medical expenses reimbursed by insurance cannot be included in tax deductions. Similarly, over-the-counter drugs, general preventive health items such as vitamins, cosmetic procedures are not tax deductible.

Amount of Expense You Can Deduct

If the age of the elderly person, for whom the medical expenses were incurred, is 65 years or more, the taxpayer can claim a deduction on an amount higher than 7.5% of their annual gross income (AGI).  If the age is less than the deduction can be claimed on an amount that is 10% more than the AGI.

Who Qualifies to Claim Medical Expense Deductions as a Caregiver?

A person caring for their spouse, dependent or qualifying relative qualifies for tax deductions against the medical expenses borne by them. The person who the taxpayer is caring for should be a U.S. citizen or resident of United States, Canada or Mexico. According to the IRS, a qualifying relative may be a parent, step-father, step-mother, father-in-law, mother-in-law, or any other person who lived with the taxpayer during the financial year.

Besides qualifying for medical expense deductions, you can also claim dependency deductions if the dependant or relative has a gross income less than $4050, and you pay for more than 50 percent of their support costs. The relative must also not file joint tax returns for you to qualify for claiming medical expense deductions.

Last Few Words

As our loved ones grow older, they may require round-the-clock care and support. However, given our hectic lifestyles and work commitments, many of us may not be in a position to personally look after their well-being. Our lack of experience of caring for elderly people may also be one the reasons for us not being able to take up the responsibility of a loved one. It is therefore, necessary to hire services of professional and compassionate caregivers to assist your loved ones. If you are searching for compassionate caregivers to assist your loved ones, Home Care Assistance in Dallas can help. To connect with us, fill out our contact form or call us at (214) 253 8784.


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