[Last updated January 10, 2025]

As your parents age, the need for professional care often becomes a must. However, this is typically an expensive undertaking and the costs can quickly add up. So that you’re not bearing the burden alone, the IRS offers some relief. If you’re covering nursing home expenses for a parent, you may be eligible for valuable tax deductions.
This guide breaks down how nursing home expenses can be tax-deductible, what qualifies as a medical expense, and key strategies to help you maximize your savings.
What is a medical expense?
If you have incurred medical expenses (or those of a dependent), the IRS allows you to deduct costs not covered by your insurance on your tax return. However, not all expenses are created equal, and you need to be sure that you are deducting the right ones. The IRS defines medical expenses as the cost of treating or curing an illness or a physical or mental disability. This definition also includes some or all costs associated with staying in a nursing home. If you’ve incurred these costs during the tax year, you’ll likely be able to claim a deduction; however, costs incurred from a nursing home have some additional rules. Let’s take a look below.
IRS rules for deductible expenses in nursing home care
Under specific conditions, some costs of nursing home care are deductible expenses. Consider these IRS rules if you plan on claiming your parent’s nursing home care on your tax return.
Can I claim my parent as a dependent?
First, you must determine if your parent qualifies as a dependent. An adult can claim another adult as a dependent if they are a qualifying relative. An adult is considered a qualifying relative if they meet these criteria:
- You provide more than one-half of their total financial support each year.
- Their annual gross income is less than $5,050. Their total income does not include Social Security benefits unless they are married and filing a separate return.
- They are related to you or lived in your household all year. Your living arrangements must not violate state law.
- They cannot be claimed as a dependent by another taxpayer.
What is the primary reason for my parent’s nursing home stay?
Whether you can deduct your parent’s nursing home expenses depends on the reason for their stay. The IRS differentiates between people whose primary reason for being in the nursing home is to receive medical care and those who are there primarily to receive nonmedical care.
Nursing home residents who live in care communities primarily for medical care can deduct 100% of their annual expenses, including room and board. On the other hand, nursing home residents who live in these facilities for nonmedical care may deduct only the cost of medical care, not nonmedical expenses such as meals or lodging.
How much of my nursing home costs are deductible expenses?
You can only deduct the total amount of allowable expenses that exceeds 7.5% of your adjusted gross income. If your siblings or other family members help to cover at least 10% of the cost but not more than 50% of the costs, you can form a multiple support group and make a multiple support declaration when you file your tax return.
Can my parent and I claim the same expense?
Typically, you may only deduct the expenses that you paid during the tax year, not that someone else paid. You’ll do this by itemizing your expenses on Schedule A when you file your annual tax return.
When you itemize, you’ll track and list each time you paid for nursing home care out of pocket. For accurate reporting, keep receipts for the expenses you’ve paid. Even if you make partial payments for nursing home services, you might be able to deduct the expenses you incur.
Some examples of other medical expenses that you should track throughout the tax year are:
- Copays for doctor’s appointments.
- The cost of prescriptions and over-the-counter drugs.
- Purchase of medical equipment like wheelchairs or walkers.
- Payments for transportation to medical appointments. Keep in mind that you might be able to claim mileage on your tax returns, too.
How can a tax deduction affect me?
Claiming a deduction for nursing home expenses might not be the best choice for you. Tax deductions reduce the amount of your taxable income. Deductions can place you into a different tax bracket, meaning you could see some savings, but only if your expenses exceed 7.5% of your adjusted gross income. However, if your expenses are unlikely to exceed this amount, you may be better off taking the standard deduction.
Consult a tax professional
Paying for a parent’s nursing home care can be difficult, but some costs may be deductible expenses. The best way to get the most out of nursing home tax deductions is to consult a tax attorney or tax professional. They can help guide you through the sometimes complicated process of determining your eligibility to deduct nursing home expenses and ensuring that you maximize your deductions. With the right information and help, caring for your parents and looking after your finances at the same time is possible.