When you hire a caregiver to assist you with bathing, dressing, eating, getting into and out of your bed, chair, etc. (called transferring), getting to and from the bathroom, or managing continence, the cost of those services is considered a tax deductible medical expense. Care for a person with memory loss, for their health and safety, is also a deductible medical expense.
When you pay someone to take you to a medical appointment (via ambulance, taxi, private car, etc.), the cost is considered a tax deductible medical expense.
Income tax deductions from medical expenses you pay MAY save you money when you file your income tax return. If you are in the lowest income tax bracket, you may save in taxes, an amount equal to 10% of the cost of the medical expense.
If you are in a middle tax bracket, you may save 15% to 25% of the cost of the medical expense. The savings come at the time you file your income tax return. Think of it as a refund or rebate on the cost of the homecare or transportation.
Since each person’s income tax situation is different, ask your tax preparer how this may applyto YOU.
For Examples of Federal Income Tax Savings for a Single Person in the 10% Tax Bracket: read more.