Are Home Care Expenses Tax Deductible?

As the April 15 deadline looms for filing tax returns, have you ever wondered, “Are home care expenses tax deductible?” It’s important for seniors and their families to know that in addition to medical expenses for long-term care, personal care services—like help with bathing and dressing—can also be listed as itemized deductions if the person is considered chronically ill and these services are prescribed by a doctor. This can result in big cost savings for those requiring this type of help for a long time.  

Although a certified public accountant should always be consulted when dealing with complex tax matters like these, the Internal Revenue Service is fairly clear on the topic.  

Elder Care Planning 

When getting ready to have your taxes prepared, it’s good to know that under some circumstances, the IRS considers elder care to be tax deductible. Qualified long-term care services, according to the IRS, are “necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services.” 

However, there’s a caveat. These services must be provided following a care plan prescribed by a licensed health care practitioner for a chronically ill individual. To qualify as such, a licensed health care practitioner must have, within the previous 12 months, certified that the person meets either of these descriptions:  

• Due to a loss of functional capacity, the individual is unable to perform at least two activities of daily living—such as eating, using the toilet, transferring, bathing, dressing, and continence—without substantial assistance from another individual for at least 90 days. 

• Because of severe cognitive impairment, the individual requires substantial supervision to be protected from threats to their safety and health. 

Private Home Care 

FirstLight Home Care’s Personal Care and Dementia Care services qualify as tax deductible expenses if prescribed by a physician for a person they deem to be chronically ill. And there are many benefits of private home care. These services can take the burden off of relatives who may not be able to care for loved ones due to their own jobs and family responsibilities or who might need a break from time to time for their own appointments, vacations or to simply relax and recharge from the task of daily caregiving.  

When it comes to personal care, FirstLight can assist with many aspects of daily living. These include help with bathing and personal hygiene, dressing and grooming; using the toilet; safely transferring in and out of a bed, chair or vehicle; cooking and light housekeeping; eating and drinking functions to ensure safe and comfortable mealtimes; and walking/mobility as older adults can benefit from regular movement as long as safety precautions are taken like using a walker and having a caregiver right there to guide them every step of the way. 

Memory care, for those with Alzheimer’s and other types of dementia, is personalized to help seniors dealing with changes to thinking and behavior that often interfere with daily living. Every person is affected differently by this disease, and so, caregivers who provide dementia home care are trained to both monitor and manage symptoms and adjust the type and level of services as needed. In order to provide a familiar, stable environment, caregivers will complete a booklet with your loved one, covering details about their personal history, likes and dislikes, as well as what makes them happy, anxious or frustrated. This is just one way caregivers help to balance moods of those with dementia and help them feel safe and secure.  

Caring for Aging Parents 

When it comes to providing care for loved ones, it’s a relief to know you aren’t alone in asking, “Are home care expenses tax deductible?” Everyone wants the best for their aging parents, but may be concerned about the costs. Knowing that personal care services can be tax deductible—as long as the IRS requirements are met—can ease that worry. Contact us to learn more about FirstLight’s personal care and dementia care services and how they can help your family.