Can I Deduct Medical Expenses Paid for My Parents?
Understand the tax rules for deducting medical expenses paid for your parents, including eligibility criteria, required documentation, and key filing considerations.
Covering medical expenses for aging parents can be a financial burden, but the IRS allows deductions under specific conditions. Understanding these rules can help reduce taxable income and ease financial strain.
Before claiming deductions, it’s important to know what qualifies, what records are required, and how to properly file.
Dependency Criteria
To deduct a parent’s medical expenses, they must qualify as your dependent for tax purposes. This depends on their income, financial support, and living situation. In 2024, their gross income must be below $4,700, including taxable earnings such as wages, interest, dividends, and rental income, but generally excluding non-taxable Social Security benefits.
You must provide more than half of their total financial support, covering expenses like housing, food, and medical care. If multiple family members contribute, a Multiple Support Agreement (Form 2120) allows one person to claim the parent as a dependent if they cover at least 10% of support and all contributors agree.
Unlike other dependents, a parent does not need to live with you. They can reside in their own home, a senior living facility, or a nursing home, as long as you cover most of their expenses.
Types of Eligible Medical Services
Medical expenses must be for the prevention, diagnosis, treatment, or management of a physical or mental condition. The IRS includes payments to physicians, dentists, surgeons, and other medical professionals. Hospital care, including inpatient treatment, meals, and lodging, is deductible if the primary reason for hospitalization is medical care.
Prescription medications and insulin qualify, but over-the-counter drugs do not unless prescribed. Medical equipment such as wheelchairs, hearing aids, and prosthetic limbs are deductible, as are home modifications like ramps or widened doorways for mobility impairments. Transportation costs related to medical care—including mileage, tolls, parking fees, and ambulance services—can also be claimed.
Long-term care services are deductible if medically necessary and provided under a prescribed plan of care. Nursing home expenses qualify if the primary reason for residence is medical care. If custodial care is the main purpose, only the medical portion is deductible. In-home nursing services, whether provided by a licensed professional or a home health aide under a doctor’s supervision, also qualify.
Documentation Essentials
Thorough records are necessary when claiming medical expense deductions. Receipts, invoices, and statements from healthcare providers should include the patient’s name, date of service, type of treatment, and amount paid. Credit card statements or bank records alone are insufficient unless accompanied by itemized billing details.
Only out-of-pocket costs are deductible, so insurance reimbursements must be tracked. If an expense is later reimbursed by insurance or a health savings account (HSA), the deduction must be adjusted. Failing to account for reimbursements can lead to overstated deductions and potential penalties if audited.
If you pay medical expenses through a shared bank account or directly to providers, documentation should clearly show that you—not your parent—covered the cost. Canceled checks, electronic payment confirmations, or financial statements linking the expense to you help establish this. If multiple family members contribute, maintaining detailed records of contributions and agreements prevents discrepancies in determining who can claim the deduction.
Filing Considerations
Medical expense deductions are reported on Schedule A of Form 1040, but only the portion exceeding 7.5% of adjusted gross income (AGI) is deductible. For example, if your AGI is $80,000, only expenses above $6,000 qualify. Timing payments within the same tax year can help consolidate deductible amounts above this threshold.
Choosing between the standard deduction and itemizing is key. The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly. Medical deductions only benefit taxpayers if total itemized deductions exceed these amounts. If medical costs fall short in one year, bunching expenses into a single year may increase the likelihood of exceeding the standard deduction.