INSIGHTS & IDEAS

Tax Court rules that payments made to caregivers are deductible medical expenses

Generally payments to caregivers providing convalescent care have not been treated as a deductible medical expense.  A recent Tax Court case has held that payments to caregivers who weren’t licensed healthcare providers and were not required for the diagnosis, cure, mitigation, treatment, or prevention of a patient’s disease, nonetheless satisfied the requirements to be considered qualified long term care expenses.  This ruling appears to open up the probability that payments to caregivers providing convalescent care prescribed by a physician will be deductible.



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