Can I Deduct In-Home Caregiver Costs?

Paying for someone to provide care at home for a family member with a medical condition can qualify as a medical expense in certain situations. If the caregiver performs nursing or medical services required by the individual's condition, those costs are deductible as a medical expense. Non-medical personal care tasks performed by the same caregiver may also be deductible if the medical services are the primary purpose of the arrangement. If the care is to allow both spouses to work while watching a dependent, some costs may also qualify for the Child and Dependent Care Credit instead. Keeping documentation of the caregiver's role and the medical necessity of the services is important to support the deduction.