FIVE POTENTIAL TAX BREAKS TO KNOW BEFORE MOVING A PARENT INTO A NURSING HOME

If you have a parent moving into a nursing home, taxes are probably not on your mind. However, there may be tax breaks. For example, the costs of qualified long-term care are deductible as medical expenses to the extent they, along with other medical expenses, exceed 7.5% of adjusted gross income (AGI). If your parent qualifies as your dependent, you can include medical expenses you incur for your parent along with your own when determining your medical deduction. Premiums paid for a qualified long-term care insurance contract are deductible as medical expenses (subject to limitations based on age) to the extent they, along with other medical expenses, exceed the percentage-of-AGI threshold.