Deductibility of Nursing Home Care

By: AARP.org

Q: My mother is in a memory-care facility. What documentation is necessary to deduct the cost as a nursing-care facility? The IRS site differentiates between medical (deductible) and personal (non-deductible) nursing care. Thanks.

A: You should get a letter from her doctor stating that memory care is the specific type of care she requires. Keep the letter with her tax records, so that if the IRS were to audit the return, you would have the required information.  

IRS Publication 17, page 140, states: “NURSING HOME - You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.”

Usually the entire bill from the nursing home should be listed on Form 1040, Schedule A, line 1. If the bill includes personal expenses, such as for telephone, cable TV, the beauty shop, and the like, you would deduct their cost and list the balance on line 1.

These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided.