Answer: Not all costs are tax deductible, but some are, if your Mother itemizes her deductions. Such expenses include:
- The portion of her monthly assisted living bill attributable to assistance (vs. room & meals)
- Out of pocket medical expenses, not reimbursed by insurance;
- Preventative care;
- Surgical and other medical treatments;
- Vision and Dental care;
She can’t deduct 100% of the expenses, but the amount of her 2017 expenses which exceed 7.5% of her Adjusted Gross Income (AGI). For example, if her AGI was $30,000, 7.5% = $4,500. So, the amount of her expenses over $4,500 are deductible.
If you paid for her care out of pocket, you may be able to deduct these costs. The calculations are similar to the example above. You must:
- Have paid at least half of her living expenses, and;
- Can claim your Mother as a dependent.
Of course, consult a tax professional for greater detail.
Attorney James Haroutunian practices real estate law, estate planning and probate at 630 Boston Road, Billerica, MA. He gladly invites questions at firstname.lastname@example.org or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com. This column is published for entertainment purposes only and not to be relied on as legal advice, in any manner.