Submitted By: someone
Answered: March 4, 2014 8:30 am

My 85-year old spouse has Alzheimer’s disease, and we have a caregiver who spends 5 hours a day 5 days a week bathing, dressing, feeding, and otherwise attending to her. I pay $3,300 a month for this service. Is it tax deductible?

While Medicare does not cover the cost of long-term care services, they may qualify as a deductible medical expense. Since your spouse is chronically ill and requires personal care services, the cost is deductible provided they are pursuant to a plan of care prescribed by a licensed health care practitioner. As children in school are told: Get a doctor’s note.

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Tax Glossary

Lump-sum distribution

Payments within one tax year of the entire amount due to a participant in a qualified retirement plan. Qualifying lump sums may be directly rolled over tax free, or, in some cases, are eligible for current tax under a favorable averaging method.

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