If the person paid is not a medical professional, what criteria must they meet for the expense to qualify as a tax-deductible medical expense?

Federal Tax Deduction for Caregiver Expenses

To deduct caregiver expenses for a dependent, such as a mother, on federal taxes, the expenses must qualify as medical expenses under the Internal Revenue Code. Here are the requirements based on the relevant sections of the code:

Qualifying Medical Expenses

- Definition: According to [26 U.S. Code § 213], medical care expenses include the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. These expenses must be primarily to alleviate or prevent a physical or mental defect or illness.

- Qualified Medical Expense: As per the [Tennessee Code Title 67], a qualified medical expense is an expense paid by the taxpayer for medical care as described in § 213(d) of the Internal Revenue Code.

Deductibility Criteria

1. Itemization: The taxpayer must itemize deductions on their federal tax return to claim any medical expenses.

2. AGI Threshold: Only medical expenses that exceed 7.5% of the taxpayer's adjusted gross income (AGI) are deductible.

3. Payment: Expenses must have been paid during the tax year for which the deduction is being claimed.

4. Dependent Status: The individual for whom the expenses are paid must qualify as the taxpayer's dependent according to IRS rules.

Documentation and Records

- Receipts and Invoices: Taxpayers should keep all receipts and invoices for medical expenses paid throughout the tax year.

- Proof of Payment: Proof of payment may be required, such as bank statements or credit card statements showing that the expense was paid by the taxpayer.

- Medical Necessity: Documentation from medical professionals may be needed to establish the medical necessity of the expenses.

Additional Considerations

- Non-Medical Expenses: Expenses that are merely beneficial to general health, such as vitamins or vacations, do not qualify as deductible medical expenses.

- Reimbursements: Any expenses reimbursed by insurance or other sources are not deductible.

Conclusion

Caregiver expenses for a dependent can be deducted as medical expenses if they meet the criteria set forth in 26 U.S. Code § 213. Taxpayers must itemize their deductions, ensure the expenses exceed the AGI threshold, and maintain proper documentation to support the deduction. It is important to review the most current IRS publications for any updates to the tax code or deductible expenses.

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Sources:

26 U.S. Code § 213 - Medical, dental, etc., expenses 26 U.S. Code Chapter 1 - NORMAL TAXES AND SURTAXES 26 U.S. Code Subchapter B - Computation of Taxable Income 26 U.S. Code Part VII - ADDITIONAL ITEMIZED DEDUCTIONS FOR INDIVIDUALS 2023-12-11

26 U.S. Code § 162 - Trade or business expenses 26 U.S. Code Chapter 1 - NORMAL TAXES AND SURTAXES 26 U.S. Code Subchapter B - Computation of Taxable Income 26 U.S. Code Part VI - ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS 2023-12-11

Tennessee Code Title 67. Taxes and Licenses § 67-10-102 2020-01-01

Internal Revenue Bulletin: 2007-50 2007-12-09