Does anyone know if there are special tax exemptions for seniors who are being cared for in their home?

I have a folder where I keep all receipts, (plus Amazon on computer). I make a list...medical equipment, OTC drugs (vitamins/eye drops/aspirin), mileage (to/from docs or hosp)., Part A & B deduct, I even included Boost/Ensure, since husband couldn't swallow pills anymore, hearing aides, Bed mats, diapers, cremes for bed sores. Then my accountant gets back all taxes paid from his pensions. Eventually, my husband, a quadraplegic, went on home Hospice, where after 4 months, he passed. At that point, Hospice gave me ALL supplies and equipment. They were a life-saver...glad I had the last 4 months with husband at home. Good luck with your parents.

Keep careful records and receipts. Do know they set any reimbursement very high, and you have to be out of pocket an awful lot of money. Consult your own tax preparer about whether the person you care for in home makes YOU in line for an exemption, much as the one you take for your children. Many seniors do not earn enough to pay much in taxes. It was only my bro's good saving habits that got him earnings on CDs that tipped him into tax territory. Good luck.

If either your mom or dad is a Veteran the VA may provide some supplies. If either or both are eligible for Hospice you would get supplies, equipment and other help from Hospice. Hospice is covered by Medicare and Medicaid so the supplies and equipment would be covered.

Talk to a tax person about the expenses to get accurate answers and to help you keep up with appropriate receipts all year. From what I understand, the diapers are not deductible. Co pays for medical expenses should be as well as the safety equip (as long as the equip did NOT improve the value of your home).

In fact, before you take all the paperwork to someone, call first and ask what receipts to bring and tell them what you have, ex diapers, safety equip, etc. You can also look it up in the IRS instructions books for itemized expenses.

This is in reference to federal taxes, so it it the same for all states.

Once my mother was moved to MC and we were using trust funds to help pay for it, I took both to an IRS Enrolled Agent to do the taxes. In order to remain an Agent, they have to stay up to date with all IRS rules and changes. He didn't charge any more than the blockheads who messed up mom's return BIG time (omitted the pension, which was the bulk of her income at that time!) I had planned to do it, asking often if she got the needed tax documents in the mail yet. She finally decided no one was going to do them and went there. AUGH! All the work I had done to ensure she wouldn't get penalized again out the window!

Anyway, note to others: MC is totally deductible. AL is not (only medically necessary treatments there can be deducted.) I saved all receipts for briefs, wipes, medical insurance, Medicare insurance, Rxes, etc. As far as I know he used them all. They were considered "necessities." This is why AL isn't deductible - it's more considered a convenience. Once in MC, I submitted the special W4 to the pension people for no tax status. We don't have a state income tax here, so unclear if any deductions would apply. She hasn't had to pay taxes for several years now.

As someone else noted, whether to itemize Fed taxes or not depends on the total of all appropriate deductions. Medical (ins premiums, Medicare, Rx, est) has to exceed a certain percent of the total income. If they own a home, tax payments are, to a maximum, deductible. Non-registration fees (often called excise), etc are deductible. But, if the standard deduction is more than all these, it's better not to itemize. NOTE: if they are over 65, there is an additional amount allowed, over the standard married filing joint. Also more allowed if they are blind (can't be just one eye - mom didn't qualify for that.)

If SS is their only income, and they pay taxes, they might get it all back, if the total income is low enough. On the main form, you enter the total in a box, but in the instructions is a convoluted form (doesn't get sent in) to calculate the portion that has to be claimed. Generally it will be less than the total SS income.

Standard deduction for married filing joint is $24,800, but there's extra if they're over 65. If you think the itemized would exceed that, then plan to itemize. Keep in mind there is a limit to how much property tax can be claimed. I think you might be hard pressed to exceed this amount. Last year I could still itemize as the total exceeded the standard by a bit, getting me more return, but I doubt I can do that this year (included interest payments on my mortgage and property tax on 2 places.) Can't speak for state taxes. There was some for the capital gains in the trust (I think it was), but we don't have state tax for income, so no deductions to worry about there!

(if you think the $ amounts are close, find a local IRS Enrolled Agent and run it by them. I think mom's tax return bill was about $259 - well worth it for all that he has to do, itemizing the MC and other stuff, writing off the trust funds as it mostly goes to the facility, etc - the trust paperwork, my eyes glaze over and my brain goes foggy just seeing the 20+ papers that come from the administrator! If it can yield more itemized, you have a template for the next years.)

We rounded up all my mom's receipts and took them to a CPA. She also was paying for 24/7 care in her home, from her investments. My brother handled that end of things, so I don't know any details. I do know she NEVER had to pay any income tax on herself.

Incontinence supplies are deductible if there is an underlying medical condition causing the problem. Although my DH has dementia, two surgeries (3 days apart) for sub-dural hematomas have caused him to be incontinent. I checked with my CPA who said the Depends and wipes could be deducted, but not the bed pads. But check with your tax person to make sure the law hasn't changed. Tax laws get changed all the time without notice to the public.

My parents had a CPA for their taxes, and whenever I gathered up info to give to the CPA, he never asked about Depends, etc. So, unless the Federal IRS rulings have changed, I doubt those items could be deducted.

Once my Dad needed a skilled caregiver at his home, the CPA was able to make some deductions regarding the caregiver's cost. But once Dad moved into senior living and he brought along one of his caregivers, he could no longer deduct her cost. That could have changed as it's been a few year ago.

I would check out if parents even need to file taxes. If getting SS only and under a certain amount, they don't pay taxes.

The rules for tax deductions vary year to year. I believe they have to total a percentage of the income to be deducted, with the standard deduction around $26,000 for a couple filing joint you possibly will do better taking the standard. If you are familiar with doing taxes, work thru it and see how it looks, otherwise seek a professional. AARP often has free or low cost help for seniors. Good luck.