Medical Expense deduction

[DJ]

Can the monthly cost of a Nursing Home, called Senior Living, be deducted on Schedule A as medical expenses? The total cost is $53,000.00 for 2021.

[dkh]

Here is what I found at IRS   https://www.irs.gov/faqs/itemized-deductions-standard-deduction/medical-nursing-home-special-care-ex...

[Accountant-Man]

Google is your friend. 

[rcherenson]

Yes, but if it is a huge expense and deduction, frequently the IRS questions it. It's a valid expense but I have a client whose mother in law suffered a serious stroke and had home health aides around the clock to great expense, the IRS questioned. He was approved ultimately, and didn't have to submit every bill but it was a mini audit. so do be aware claiming large medical expenses does raise a red flag, so clients need to be prepared to justify those expense claims.

[swarren69]

Did you do any research before asking the question?

[DJ]

Thank you for replying to my question regarding Nursing Home costs.   It Does not say that it is for 

Nursing Home special care expense. i would have to think that some of the cost is for Nursing Home Special Care, like giving medication. Maybe not all of the cost but some of it for sure. 

[dkh · Accepted solution]

You will need to ask the Nursing Home for a breakdown. 

[sjrcpa]

As in:

Why is the client in the nursing home?

With which activities of daily living do they need help?

Look at the detailed monthly invoices.

[DJ]

I asked the Nursing Home, and they gave me a breakdown of her billing. It listed what the Nursing care costs were for 2021.

Thank you

[BobKamman]

"Happened once to a client" does not mean "IRS frequently questions."  I used to tell people I had never seen an IRS audit of someone over 65, but then they did an office audit of my 75-year-old client over her charitable contributions.  (Have I already told the story about having to prove that the Catholic Church is a qualifying organization?)  Anyway, all of the assisted-living expenses are deductible if the rules found in Pub 502 are met.  I don't think "nursing home" is a term used in the healthcare community much these days. 

Qualified Long-Term Care Services

Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:

1. Required by a chronically ill individual, and

2. Provided pursuant to a plan of care prescribed by a licensed health care practitioner.

Chronically ill individual.

 

An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.

1. He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence.

2. He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.

Maintenance and personal care services.

 

Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment).