| April 15th is almost here and if you are owing tax it | | | | in your home or another care facility. |
| may pay to take a second look at that return to see | | | | Generally, only the amount spent for nursing services |
| if you claimed all medical deductions you are entitled | | | | is a medical expense. If the attendant also provides |
| to. Your diligence in keeping track of expenses will | | | | personal and household services, amounts paid to the |
| pay off. IRS Publication 502 has a complete listing of | | | | attendant must be divided between the time spent |
| all medical costs deductible. Following are some of the | | | | performing household and personal services and the |
| commonly overlooked medical deductions. | | | | time spent for nursing services. However, certain |
| Medical Expenses | | | | maintenance or personal care services provided for |
| The medical expense deduction is limited to the | | | | qualified long-term care can be included in medical |
| amount by which the annual medical expense | | | | expenses. |
| exceeds 7.5% of your adjusted gross income. | | | | You can also include in medical expenses part of the |
| Included in this category are unreimbursement | | | | amount you pay for that attendant's meals. Divide |
| amounts paid for health insurance, hospital, and | | | | the food expense among the household members to |
| nursing care, doctor's and dentists' visits, prescription | | | | find the cost of the attendant's food. Then divide |
| medications, eyeglasses, hearing aids, and long-term | | | | that cost in the same manner as in the preceding |
| care insurance premiums and services. | | | | paragraph. If you had to pay additional amounts for |
| You can also deduct home improvements related to | | | | household upkeep because of the attendant, you can |
| medical expenses. These expenses may include, but | | | | include the extra amounts with your medical |
| are not limited to the following: | | | | expenses. This includes extra rent or utilities you pay |
| * Constructing entrance or exit ramps for your home. | | | | because you moved to a larger apartment to provide |
| * Widening doorways at entrances or exits to your | | | | space for the attendant. |
| home. | | | | Employment taxes. You can include as a medical |
| * Widening or otherwise modifying hallways and | | | | expense social security tax, FUTA, Medicare tax, and |
| interior doorways. | | | | state employment taxes you pay for a nurse, |
| * Installing railings, support bars, or other | | | | attendant, or other person who provides medical |
| modifications to bathrooms. | | | | care. If the attendant also provides personal and |
| * Lowering or modifying kitchen cabinets and | | | | household services, you can include as a medical |
| equipment. | | | | expense only the amount of employment taxes paid |
| * Moving or modifying electrical outlets and fixtures. | | | | for medical services. |
| * Installing porch lifts and other forms of lifts (but | | | | Health Insurance Costs for Self-Employed Persons |
| elevators generally add value to the house). | | | | If you were self-employed and had a net profit for |
| * Modifying fire alarms, smoke detectors, and other | | | | the year, were a general partner (or a limited partner |
| warning systems. | | | | receiving guaranteed payments), or received wages |
| * Modifying stairways. | | | | from an S corporation in which you were a more |
| * Adding handrails or grab bars anywhere (whether | | | | than 2% shareholder (who is treated as a partner), |
| or not in bathrooms). | | | | you may be able to deduct, as an adjustment to |
| * Modifying hardware on doors. | | | | income, all of the amount paid for medical and |
| * Modifying areas in front of entrance and exit | | | | qualified long-term care insurance on behalf of |
| doorways. | | | | yourself, your spouse, and dependents. |
| * Grading the ground to provide access to the | | | | The insurance plan must be established under your |
| residence. | | | | trade or business, and you cannot take this deduction |
| Only reasonable costs to accommodate a home to a | | | | to the extent that the amount of the deduction is |
| disabled condition are considered medical care. | | | | more than your earned income from that trade or |
| Additional costs for personal motives, such as for | | | | business. |
| architectural or aesthetic reasons, are not medical | | | | You cannot take this deduction for any month in |
| expenses. | | | | which you were eligible to participate in any |
| An often overlooked medical deductions is the | | | | subsidized health plan maintained by your employer or |
| medicare Part A and Part B premiums voluntarily paid | | | | your spouse's employer. This rule is applied separately |
| by Social Security recipients. Also, if you travel to | | | | to plans that provide long-term care insurance and |
| medical conferences relating to a dependent's chronic | | | | plans that do not provide long-term care insurance. |
| disease, smoking cessation programs or travel to | | | | If you qualify to take the deduction, use the |
| obtain medical treatment, you may be able to deduct | | | | Self-Employed Health Insurance Deduction Worksheet |
| the cost of your transportation, as well as food and | | | | in the Form 1040 instructions to figure the amount |
| lodging. | | | | you can deduct. But if any of the following applies, |
| Nursing Services | | | | do not use the worksheet. |
| You can include in medical expenses wages and other | | | | * You had more than one source of income subject |
| amounts you pay for nursing services. The services | | | | to self-employment tax. |
| need not be performed by a nurse as long as the | | | | * You file Form 2555, Foreign Earned Income, or |
| services are of a kind generally performed by a | | | | Form 2555-EZ, Foreign Earned Income Exclusion. |
| nurse. This includes services connected with caring | | | | * You are using amounts paid for qualified long-term |
| for the patient's condition, such as giving medication | | | | care insurance to figure the deduction. |
| or changing dressings, as well as bathing and | | | | Feel free to contact us at if you have questions on |
| grooming the patient. These services can be provided | | | | any how to maximize your medical deductions. |