12 Jan Is a nursing home a deductible expense?

Q.In 2017, medical expenses could be deducted after 7.5 percent of income. If an individual is in a nursing home, is the cost — which could be $100,000 or more — included in the medical deduction?
— Trying to help

A. Nursing home care is so incredibly expensive, and yes, the IRS will help you out.

The new tax law continues to allow for medical expenses in excess of 7.5 percent of your adjusted gross income (AGI) to be deductible, said Howard Hook, a certified financial planner and certified public accountant with EKS Associates in Princeton.

That’s a change for those under age 65, as it had been a higher 10 percent threshold.

He said this assumes you will still be able to itemize.

“The 7.5 percent of AGI threshold is only for 2017 and 2018,” he said. “Beginning in 2019, the amount increases to 10 percent of AGI.”

Fortunately for you, regarding the deduction for nursing home care, the answer is yes.

“That expense is still considered medical and would be included in the calculation of deductible medical expenses,” Hook said.

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This post was first published in January 2018.