When are Private Home Care Services Tax Deductible?

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Tax Deductible Home Care Services

The financial aspects of caring for an aging parent or loved one are commonly at the top of mind of families. Fortunately, there is some financial relief for families of aging adults who require long-term care due to physical and mental limitations. Your family and your loved one may be able to claim tax deductions for private home care services in El Dorado Hills if the following conditions are met:

  1. If the elderly adult is considered chronically ill. According to the U.S tax laws, a chronically ill elderly adult is defined as someone who is not able to perform at least two activities of daily living (eating, toileting, bathing, dressing and incontinence) without help from another individual, or if the senior requires substantial supervision or 24 hour care in El Dorado Hills to protect them from physical injury as the result of cognitive impairment or mental illness.
  2. The state of the senior is confirmed by a medical professional. Tax deductions for long-term, non-medical care are only applicable when a licensed nurse, doctor, or other medical practitioner has determined that the senior meets one of the above conditions, deeming him or her chronically ill. The medical professional will need to write a letter that states how the senior meets these requirements, while also providing a specific plan of care. Deductible costs for long-term care will be determined by the plan of care from the prescribing health care practitioner.
  3. When the dependent covers 50% or more of private home care expenses. Private home care expenses are often covered by the care recipient’s immediate dependants. If you pay at least 50% of your parent’s cost for private home care services, you are liable to receive deductions during tax filing. You will be required to provide documentation to the IRS to verify all payments made during the year in which deductions are being filed. Aside from cash and check payments made to a private caregiver, records of non-cash payments must be provided before deductions are approved.

To ensure that you or an aging loved one qualify for tax deductions this tax season, meet with a tax professional who will be able to provide you with information specific to your individual family situation.

If your aging parent and your family qualify for any of the above tax deductions and you are interested in learning more about your options for non-medical, in-home care, reach out to Home Care Assistance of El Dorado Hills today. In addition to flexible hourly and live-in care, we also provide dementia and Alzheimer’s care in El Dorado Hills. Call us at 916-358-3801 for more information or to request a complimentary, in-home consultation.


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