The case involved a mother who was diagnosed with dementia. Her doctor certified that she needed continuous care to ensure that she took all her medicine. Her son hired caregivers to assist her. The tax court ruled (Est of Baral, 137 TC No.1) that these payments were deductible medical expenses.
This is not limited to just dementia payments. The ruling clarified that the cost of maintenance and personal care services qualifies as a medical expense for patients who are certified by a health care professional as being unable to do at least two of the six activities of daily Living – eating, toileting, transferring, bathing, dressing and continence. The certifying professional can be a doctor, registered nurse or licensed social worker. The certifying professional is required to approve the care program for the patient.
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