Agency Tax Benefits

IN-HOME OR IN-FACILITY CARE WITH NSCC MAY BE  TAX DEDUCTIBLE 

Tax Deductibility Benefits of Agency Home Care Services
Unique tax benefits for qualified home care services. 

Internal Revenue Service Publication 502 states: Amounts paid for qualified long-term care services are deductible as a medical expense for chronically ill individuals. 

An individual is deemed chronically ill if a licensed healthcare practitioner has certified, within the last 12 months, that the individual meets one of the following criteria: 

• The individual is unable to perform, without substantial assistance from another individual, at least two activities of daily living (ADLs) due to loss of functional capacity for at least 90 days. 

• The individual requires substantial supervision to protect him or her from threats to health and safety due to severe cognitive impairment. 

ADLs include ambulating, eating, dressing, personal hygiene, continence, and toileting. 

Deduct dwelling modifications and accommodations. 

The IRS allows you to deduct expenses for medically necessary home modifications, provided that these changes do not increase the value of your property.  Examples of these type of expenses include installing railings, support bars or other modifications to a bathroom, lowering countertops or modifying kitchen equipment, widening doorways and hallways, and building entrance ramps. 

Deduct Nursing Home Care 

Finally, a portion of the cost of care in a nursing home, home for the aged or similar facility including the cost of meals and lodging is deductible, if the principal reason for being there is to get medical care. 

Discuss specifics with our advisors and your tax professionals to identify eligibility.