Consult with your tax advisor regarding tax deductions for long-term caregiver expenses
In this ruling, a chronically ill patient was diagnosed by her doctor as suffering from dementia and the physician determined that 24-hour assistance and supervision was necessary for medical reasons. The woman had frequent hospital stays due to failure to take prescribed medications, was unable to follow medical instructions and was determined at-risk of falling.
The long-distance family member hired a team of 24-hour caregivers to assure the woman’s safety, to assist her in following medical instructions, and to ensure that she was eating and resting properly. These are steps that we all follow when seeking the services of professional caregivers for our loved ones when we are unable to be there ’round-the-clock!
A recent U.S. Tax Court ruling may help seniors and their families when managing the cost of long-term-care services. The tax court ruling noted that personal care and supervision was necessary for medical reasons, as determined by the woman’s physician. Therefore, the tax court ruled that the salary for the woman’s personal caregivers was a tax deductible medical expense.
An appointment with your family tax advisor can help you determine if this ruling has information that is applicable to your own family’s senior care plan and caregiving services . You may wish to reference the following site for more information on this ruling, please reference the U.S. Tax Court “Estate of Baral” for a more in-depth look.
If you would like to comment on this, please feel free to join below or on our Caregiver Forum.
We hope this was helpful. If you have any questions or if you know of a senior who could benefit from our vast array of home care services in Central Dallas, please call us at 972-239-3934 or email us. We work with most long term care insurance companies and have a staff or over 80 trained home care personnel covering the Dallas, Texas area.
