Many of us face the challenge of caring for an elderly parent or sibling. This challenge is particularly hard when the loved one is suffering from dementia. Patients need round the clock care that is often provided by caregivers who are not licensed health care providers. A new tax court decision has determined long-term care services provided by nonmedical personnel can be dedcutible if the taxpayer is sufficiently ill.
The decision does not allow deduction for expenses that are merely beneficial to the general health of an individual, or that cover housekeepers hired on the advice of a doctor. The case is significant because it affirms that services performed by nonmedical personnnel can be deductible. The application of the decision to your situation should be carefully reviewed by a qualified tax professional.