Submitted By: Albert
Answered: December 16, 2016 1:00 pm

I’m a man in my 90s and need 24/7 care. I’ll be paying $2,000 a week for this service. Is it deductible?

If such care is medically necessary, as prescribed and certified by a licensed health care provider, then it can be treated as a deductible medical expense if you itemize deductions. For 2016, only out-of-pocket medical expenses in excess of 7.5% of your adjusted gross income can be deducted. Starting in 2017, the AGI threshold rises to 10% unless Congress changes the law.

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Tax Glossary

Material participation tests

Rules for determining whether a person is active in a business activity for passive activity rule purposes. Unless the tests are met, passive loss limits apply.

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