Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 1
Registered: ‎04-02-2017

Assisted Living payments

Our Dad was in a Nursing/Assisted Living facility for all of 2016 due to medical reasons.  My wife and I paid for his expenses through power of attorney for about 2/3 of the costs out of his personal bank account.  We paid the difference out of our own account which totaled about $25,000 for the year.  Since more than half of his expenses were paid out of his funds we can not claim him as a dependent on our tax return.  Are we able to claim any of the money we paid his nursing care as an itemized medical expense on our return?  

 

Please advise

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: Assisted Living payments

Hi,

 

Welcome to the H&R Block community.

 

The question on my mind is "Did your dad have an income?".  If he did not have any income then he technically did not provide his own support though some expenses may have been paid out of some money he had saved up.  In this scenario you actually could claim him as your dependent and deduct everything that you paid for.

 

If your dad had an income, even a non-taxable one, then he will have provided more than half of his own support and unfortunately you won't be able to claim him or his expenses.  You must be able to claim someone as a dependent in order to deduct expenses that you paid for them.

 

Note that only the portion of the total medical expenses you paid that is in excess of 10% of your adjusted gross income would be deductible.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)