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Submitted By: Albert
Answered: December 16, 2016 1:00 pm
Answered: December 16, 2016 1:00 pm
I’m a man in my 90s and need 24/7 care. I’ll be paying $2,000 a week for this service. Is it deductible?
If such care is medically necessary, as prescribed and certified by a licensed health care provider, then it can be treated as a deductible medical expense if you itemize deductions. For 2016, only out-of-pocket medical expenses in excess of 7.5% of your adjusted gross income can be deducted. Starting in 2017, the AGI threshold rises to 10% unless Congress changes the law.
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Tax Glossary
Withholding
An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.
