Is Home Health Care Tax Deductible?

Understanding Home Health Care

Home health care refers to a range of services provided in a person’s home to help them maintain their independent lifestyle. It includes medical care skilled nursing care physical therapy occupational therapy speech therapy personal care such as bathing grooming meal preparation. The goal of home health care is to provide comprehensive high-quality care that promotes wellness improves the quality of life of individuals who require assistance in their daily living.

Tax Deductible Expenses

The Internal Revenue Service (IRS) offers tax deductions on certain medical expenses including home health care expenses. To qualify for the tax deduction the expenses must be incurred for medical care that is necessary to prevent or alleviate a physical or mental illness or defect. These expenses must also be paid for by the individual or their spouse or dependents not reimbursed by insurance.

Qualifying for Tax Deductions

To qualify for the tax deduction the expenses must exceed a certain percentage of the individual’s adjusted gross income (AGI). The threshold for the percentage of AGI varies from year to year but for tax year 2021 the threshold is 7.5% of AGI. This means that medical expenses that exceed 7.5% of an individual’s AGI can be deducted from their taxable income.

Home Health Care Tax Deductible Expenses

Expenses that may qualify for tax deductions for home health care include:

– Medical care provided by a physician nurse or therapist in the individual’s home
– Medical supplies equipment used for home health care such as oxygen equipment wheelchairs walkers
– Home modifications to accommodate medical equipment such as a stairlift or wheelchair ramp
– In-home personal care provided by a licensed home health care provider such as bathing grooming meal preparation

It is essential to keep accurate records of all expenses related to home health care to claim tax deductions effectively. Receipts invoices should be retained along with any statements from insurance providers or Medicare.

Conclusion

Home health care can be expensive but the good news is that expenses incurred for medical care may be tax-deductible. As with any tax-related matter consulting with a tax professional is recommended to ensure that all requirements are met to qualify for tax deductions. With the right planning record-keeping home health care expenses can be managed effectively tax deductions can help offset the costs.