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Deduction for long-term care expenses
paid on behalf of a dependent
 | A taxpayer can deduct some or all of the
expenses paid in connection with a parent or other relative’s long-term care.
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Treatment as
Medical Expense
Since long-term care expenses are generally
treated as a form of medical expense, they will be deductible only to the extent
that in any year the taxpayer’s total medical expenses (including eligible
long-term care expenses) for all qualified persons exceed 7.5% of adjusted gross
income, and only if the taxpayer can itemize his or her deductions.
In addition, the deduction is limited to
only those expenses that are not reimbursed by insurance or otherwise.
DEPENDENT OF THE TAXPAYER
For
the long-term care expenses incurred on behalf of a parent or other relative to be
eligible for the medical expense deduction, the individual must qualify as the
taxpayer’s "dependent," which is discussed in the preceding sub-topic.
However, the medical expense deduction will be available even
if the taxpayer cannot claim a dependency exemption for the individual (for
example, if the individual has more than $3,650, for 2009, of gross income).
MULTIPLE SUPPORT AGREEMENT
A multiple support agreement must be used if two or more
persons provide more than one-half of the individual’s total support, but no one
alone provides more than one-half.
In such case, the medical expenses paid by others who joined
the taxpayer in the multiple support agreement cannot be deducted by anyone, but
the taxpayer can deduct all the medical expenses he or she has paid.
NEXT: Examples of
Deductible Expenses
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DISCLAIMER
Martin J. Hagan is licensed to practice law in the
Commonwealth of Pennsylvania. This website is intended solely for
informational use and is not intended to solicit clients. Likewise, any
information contained in or obtained from this web site is for informational
purposes only and is not intended to be used as legal advice.
IRS CIRCULAR 230 DISCLAIMER :
Pursuant to Treasury guidelines, any tax advice contained in this website
(or any link from it) does not constitute a formal opinion. Accordingly, any tax
advice contained in this website (or any link from it) is not intended or
written to be used, and cannot be used by any taxpayer, for the purpose of
avoiding penalties that may be asserted by the Internal Revenue Service. You should seek advice
based on your particular circumstances from an independent tax advisor.
Send mail to mhagan@haganlaw.net with
questions or comments about this web site.
Copyright © 2010 Martin J. Hagan, One Gateway Center - 8 South; Pittsburgh, PA 15222-1435
Last Updated:
03/05/10
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