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Caring for an aging parent involves numerous considerations—emotional, logistical, and financial. One question many families ask: are home care expenses tax-deductible? The answer varies by circumstance, but in many cases, you can reduce your tax burden while ensuring your loved one receives the support they need at home.
Whether your parents live in Mason, Lebanon, Loveland, or any of the wider Cincinnati communities—Summerside, Milford, Terrace Park, Indian Hill, Wilmington, Eastgate, Batavia, Amelia, Bethel, New Richmond, Georgetown, Mt. Orab, Springboro, Franklin, Five Points, Blanchester, Goshen, Anderson Township, or Middletown—this guide will help you determine eligibility and maximize savings.
1. Medical Expense Deduction: The Basics
The IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income (AGI) if you itemize deductions on Schedule A (Form 1040).
Home care services—including personal care like bathing, dressing, meal preparation, medication reminders, and skilled nursing—may qualify as medical expenses if they are primarily for diagnosis, treatment, or mitigation of a physical or mental illness.
Examples of deductible home care costs:
- Skilled nursing visits by a licensed nurse
- Care by a certified home health aide
- Modifications to make your parents’ home wheelchair accessible (ramps, grab bars)
- Physical therapy sessions at home
Non-deductible costs typically include general housekeeping, companionship alone, or purely custodial care without a medical need.
2. Qualifying Criteria & Documentation
To claim home care expenses on your taxes, you must meet IRS requirements:
- Doctor’s recommendation: A licensed physician must certify that home care is medically necessary and specify the type and frequency.
- Receipts and invoices: Save detailed bills showing service dates, provider details, and amounts paid.
- Itemization: Only families who itemize deductions (rather than taking the standard deduction) can claim medical expenses.
Adult children should organize paperwork into a dedicated folder—digital or physical—and track all out-of-pocket costs throughout the year.
3. Long-Term Care Insurance & Tax Credits
If your parent has a qualified long-term care insurance policy, benefits paid to a home care agency may be non-taxable, and premiums may be deductible up to age-based limits. For 2025, maximum deductible LTC premiums for those aged 71+ are $5,640 per person.
Families can combine LTC insurance benefits with medical expense deductions to offset most home care costs.
4. Claiming Dependent Care Credit
For working adult children who pay for in-home care while they work, the Child & Dependent Care Credit may apply. You can claim up to $3,000 in expenses for one dependent or $6,000 for two or more, subject to income phase-outs.
Key points:
- Parent must qualify as your dependent (you provide over half their support).
- Care must enable you to work or look for work.
- Home care providers must have a Tax ID or Social Security Number.
5. How Adult Children Can Prepare & Plan
- Review finances & taxes early: Talk with a tax advisor—Cincinnati CPA firms in Mason, Milford, or Goshen can help.
- Get a physician’s order: Schedule an appointment for your parent’s doctor to document medical necessity.
- Choose the right provider: Did you know that home care agencies like ours can supply detailed invoices for tax purposes?
- Track costs: Use spreadsheets or apps to log expenses.
- Check LTC policies: Confirm coverage details—some policies require prior approval from the insurer.
6. Local Resources & Next Steps
- Cincinnati Tax Professionals:
- Home Care Agencies: Our network serves Warren County, Clinton County, Clermont County, and Brown County.
- Long-Term Care Insurance Brokers: Ask us for a referral.
Next Steps:
- Gather medical orders and receipts.
- Consult a tax professional by January to plan itemization vs. standard deduction.
- Schedule an in-home assessment with Seniors Helping Seniors® Warren Clermont in-home services to receive structured invoices.
By proactively managing medical expenses and tax strategies, you can reduce the net cost of quality home care for mom or dad—so they can age safely and comfortably at home.
Always check with your trusted tax professional.
Contact Seniors Helping Seniors® in-home services today for a FREE consultation. Let us help you create a plan to support your loved one’s health, happiness, and independence in their home in Cincinnati, Lebanon, Mason, Milford, or any of the surrounding communities.
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