Tax Deductions for Caregivers

Before you send your tax returns to the IRS, make sure you get the tax-savings you deserve as a caregiver. As a caregiver for a loved one, you may qualify for tax deductions and credits.

Tax deductions

Deductible caregiving costs may include:

Medical care, including nursing care
Transportation essential to medical care
In-home care, such as physical therapy
Personal care items, such as disposable briefs and special foods
Nursing home care
Assisted living or other residential care
Home modifications such as grab bars or wheel chair ramps
A caregiver can take federal income tax deductions only if the person with dementia has been certified as chronically ill. This certification must have been made by a licensed health care practitioner within the last 12 months.

Long-term care services must be given under a prescribed plan of care. Be sure to keep records of all your payment for services, and save certifications on the plans of care.

For more details on deducting caregiving costs, see IRS Publication 502, Medical and Dental Expenses.