Retired

[Unregistered]

Client has been retired

Can not do anything at home

Has two nurses (nephews) who take care of him 24/7

These two nephews get paid wages.

I deducted on sch "A" as it is required medical expenses as follow
Wages Plus Employer portion of all taxes

How sould I report on sch A? Should I put any explanations?

Thanks!

[Bird Legs]

retired-invalid

Did the 2 nephews do anything other than nursing care? such as, cooking, housekeeping
etc. Who paid the nephews wages? Was it the client? if so, then the client
would deduct these as medical expenses on sched A. subject to the 71/2 % limitation.
No explanation necessary.

If the nephews did things other than nursing care ie. cleaning, cooking, etc. then
the wages may have to be prorated between medical care & personal expense.

[Armando Beaujolais]

Client has been retired

Can not do anything at home

Has two nurses (nephews) who take care of him 24/7

These two nephews get paid wages.

I deducted on sch "A" as it is required medical expenses as follow
Wages Plus Employer portion of all taxes

How sould I report on sch A? Should I put any explanations?

Thanks!

Not enough information.

Medical expenses must be primarily to treat or prevent physical or mental illness. Is there a disease? If there are expenses for in-home care, you'd need some kind of doctor's statement that the person needs two people 24/7 for nursing care.

Are the nephews licensed?

I don't think you have to put any explanations with the return, but you're sure going to want backup documentation verifying that the expenses are indeed required for medical care. I don't know the situation, but if I was an auditor, I'd assume that the taxpayer was trying to transfer money to family members and take a deduction for it. I'm not saying that's the case, but you can bet that's what they'll go after if the return gets audited.

If the newphews were not available, would the same kind of care be required and given by two unrelated nurses?

[JJ EA]

long-term care services

The standard that has to be met to deduct the nursing services are called "qualified long-term care services". In Pub 502 you will find the definition of qualified long-term care services and nursing services. The person has to be chronically ill or mentally impaired to the point of their safety being in jeopardy. The care must be prescribed by a licensed health care provider. The care also cannot be performed by a relative unless they are a licensed care provider. Please check IRC section 213(d)(11) to confirm the rules for a relative and the relationships that are included.

[JG EA]

Differ.

In Pub 502 page 11 it says that you can include wages paid for nursing care and it says it does not have to be nurse as long as the services are those that are normally provided by a nurse. Therefore they don't have to be licensed.

You do have to separate nursing duties from regular household chores. But maintenance services can be included just like in a long term care facility. Also the cost of meals etc. for the attendants can also be included.

[JJ EA]

Pub vs Code

I agree that pub 502 does not mention the rules about the care being provided by a relative. You can find that information in code section 213(d)(11). I am surprised that the pub doesn't mention this point.