Is your parent or another elderly family member moving into a nursing home? There may be tax implications. For example, long-term care expenses may qualify as an itemized deduction if they, along with other medical expenses, exceed 7.5% of adjusted gross income (only the amount over 7.5% is deductible). As long as your relative is staying in the nursing home for medical (not just custodial) care or is chronically ill, payments to the facility normally qualify. If you claim your relative as a dependent, you can usually include medical expenses you incur for your relative along with your own to calculate your tax-deductible amount. For more details, limits and related tax breaks, contact us.
