Few taxpayers are able to deduct medical expenses on their tax return because the eligibility threshold is so high: Only qualified expenses in excess of 7.5% of your adjusted gross income are deductible. But if an elderly parent incurs substantial medical bills at home or in a retirement community, those expenses could significantly reduce his or her tax bill, or eliminate it entirely.
If you pay the bills and provide more than half of your parent's support, you can deduct the medical expenses on your own tax return. Deductible expenses include:
Medically necessary home improvements, such as constructing ramps, widening doorways for wheelchair access and installing grab bars in bathrooms.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Medically necessary equipment, such as wheelchairs, telephone devices for the hearing-impaired and special automobile hand controls.
Wages for home-health-care aides, plus related expenses such as meals and employment taxes. Even personal-care services can be deducted if the patient is chronically ill or cognitively impaired.
Normally, residents of an assisted-living facility or nursing home can deduct only the cost of medical care. But once a resident is certified as chronically ill, all monthly fees qualify as deductible medical expenses.
In addition, a portion of the one-time entrance fee, as well as the monthly fees, that residents pay to a continuing-care retirement community may be deductible. But the facility must be able to document what percentage of its overall expenses is related to providing medical care.
Other outlays that qualify for the tax break: prescription drugs, Medicare and Medicare-supplement premiums, and premiums for long-term-care insurance up to a specific dollar limit.
-
A Retirement Guide for Solo AgersIf you’re single without adult children to rely on for help, planning for your older years requires an added layer of intention and urgency.
-
The Strategy You Need to Beat Inflation and Build WealthIf you want to build long-term wealth, there's a tried-and-trusted strategy, and it starts with recognizing the inflation-busting power of equities.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
-
10 Retirement Tax Plan Moves to Make Before December 31Retirement Taxes Proactively reviewing your health coverage, RMDs and IRAs can lower retirement taxes in 2025 and 2026. Here’s how.
-
The Original Property Tax Hack: Avoiding The ‘Window Tax’Property Taxes Here’s how homeowners can challenge their home assessment and potentially reduce their property taxes — with a little lesson from history.
-
Three Critical Tax Changes Could Boost Your Paycheck in 2026Tax Tips The IRS predicts these tax breaks may change take-home pay in 2026. Will you get over $1,000 in tax savings?
-
What’s the New 2026 Estate Tax Exemption Amount?Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
IRS Updates 2026 Tax Deduction for People Age 65 and OlderTax Changes Adjustments to the extra standard deduction can impact the tax bills of millions of older adults. Here are some new amounts to know for 2026.
-
IRS Reveals New 2026 Child Tax Credit and other Family Credit AmountsTax Credits Key family tax breaks are higher for 2026, including the Earned Income Tax Credit and the Adoption Credit. Here's what they're worth.
