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manahunow Asked February 2017

Can the expense of hospice care be deducted?

My uncle passed away in 2016 after 10 weeks in a hospice care facility on private pay. Can that expense be deducted on his tax return? Medicare covered the medical but he paid for the room and nursing care while there.

Taxgirl1981 Dec 2017
If he is over age 65, the medical threshhold limit is 7.5% of adjust gross income. Anything over this amount is itemized. Add the medical amount to state taxes (income OR sales tax), property tax, interest deduction, charitable deductions, any miscellaneous.deductions (again anything over 2% of adjusted gross income). Compare total to standard deduction and use the larger number. Higher income indivuals could have limitations on deductions. Turbotax is a great tool for individuals who know somewhat what you are doing. If you are clueless, please consult a professional.

Christine73 Feb 2017
Room and board in a healthcare facility are considered medical expenses. If he itemizes, those costs can be deducted according to the schedule prescribed by the IRS.

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Llamalover47 Feb 2017
Your answer must meet several requirements ---#1 you must file an itemized tax return, #2 you must gather your medical and dental outlays for 2016 and #3 they must be over and above 10% of AGI.

JohnnyJ Feb 2017
My experience with this so far is that all such care is tax deductible when you itemize the taxes. For my friend for whom I am POA and who is living in a memory care apartment, his tax preparer told me all those expenses are tax deductible and they far exceeded his income. Everything withheld for taxes was returned to him. The long-term care insurance he receives is not considered income, according to the statement from the insurance company. It doesn't take a CPA to figure this out. Any reliable tax preparer can handle it. I will be using his usual tax preparer again this year and go over this again. If the results are the same, I will stop having federal and state taxes withheld from his income. It should also mean that the required minimum withdrawals from his IRA will be tax free, too. That will be declared as income, of course, but with so many deductions, there will be no tax liability.  With his care expenses exceeding $90,000 a year and his income less than $30,000, there is a pretty big "safety" window to work with in this case.

Nancynurse Feb 2017
This would be deductible if you itemize his taxes and the medical is more than 7.5% of his income. All Medicare premiums, supplement premiums and copays would go toward that. Only the amount over 7.5% is actually deductible if he was 65 or older. If under 65 then that amount becomes 10%. The only way any of it would be deductible is if you itemize his 2016 taxes. Standard deduction has no place for any further deduction. You could go to a CPA but there are many free sites around through AARP and such. Check with you local Office for the Aging, they should know who is doing it in your area. Filing Income taxes for a deceased Tax payer can be a bit tricky, so it is best to find someone or a program to do them.

amott6 Feb 2017
Is what I paid for a home health aide deductible? I am concerned because the insurance which paid for part of it has sent me a form making what they paid me an income.

JoAnn29 Feb 2017
All you should have paid for was the facility. Medicare pays for the Hospice care and supplies. Like suggested, you need a CPA.

Grandma1954 Feb 2017
What was not paid for through insurance would be deductible as a Medical Expense. You would have to itemize and have enough deductions for it to matter. If you do not meet the minimum deduction I think there is a "standard" that can be written off.
Would be a great idea to consult a CPA or other professional that does this on a regular basis. You may have other items that can be deducted that you may not think about. Like mileage to and from medical appointments that you may have taken him to.

kcandersen Feb 2017
I would think all or most can be deductible. Good luck.

pamstegma Feb 2017
Yes it should be deductible, but please see a tax consultant.

freqflyer Feb 2017
Manahunow, it would be best to contact a CPA or someone who prepares income taxes who is familiar with this type of deduction. There might be a chance that some line items could be deducted.

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