Social security benefit use for medical expenses:

[LKk315]

The total Social Security benefit reported on Form SSA-1099 is $33,308, of which $11,246 is taxable. Other resource of income are from 1099-R of $26K and W-2 wages of $3K. The Social Security benefits were used to pay for medical expenses. In mid-year, the SSB payment went directly to nursing home. The Form SSA-1099 reported the full year amount. The total unreimbursed medical expenses amount to $31,074. Can I report the $31,074 on Schedule A as an itemized deduction after the 7.5% of AGI, or am I limited to the SSB taxable amount of $11,246 for medical expenses.

[WITAXLADY]

Generally not all of the nursing home is for medical - I even had a rent certificate this year that listed the total paid and then the part not food - remainder could be deductible for care.

Or maybe 80% for medical -depends on how needy they are.

Best,

D

[Patrick Michael]

All nursing home costs, including the cost of lodging and meals, are medical expenses on Schedule A if the principal reason they are in the nursing home is to receive medical care. 

[mcb39]

3 hours ago, Patrick Michael said:

All nursing home costs, including the cost of lodging and meals, are medical expenses on Schedule A if the principal reason they are in the nursing home is to receive medical care. 

I had this situation last year and did extensive research.  You are correct.  Client got a nice refund and is since deceased.  We will be doing her final return this year.

[LKk315]

Thank you WITAXLADY, Patrick, and mcb39.

Additional information: The individual is in a nursing home due to being in a coma. Should I report the full unreimbursed medical expense of $31K, or is it limited to the $11K taxable SSB amount? Does the source of revenue (SSB) used to pay the medical expense and the taxable portion of SSB matter? I appreciate any input anyone has to offer.

[mcb39]

2 hours ago, LKk315 said:

Thank you WITAXLADY, Patrick, and mcb39.

Additional information: The individual is in a nursing home due to being in a coma. Should I report the full unreimbursed medical expense of $31K, or is it limited to the $11K taxable SSB amount? Does the source of revenue (SSB) used to pay the medical expense and the taxable portion of SSB matter? I appreciate any input anyone has to offer.

The entire unreimbursed medical expense goes on the Schedule A.

[LKk315]

Thank you mcb39. 

[Sara EA]

Not all the nursing home expenses are deductible.  Some nondeductible personal expenses include phone, cable TV, and hairdresser.

[Lee B]

8 minutes ago, Sara EA said:

Not all the nursing home expenses are deductible.  Some nondeductible personal expenses include phone, cable TV, and hairdresser.

Also,nonprescription medicines, toothpaste, toiletries and cosmetics.

[mcb39]

12 hours ago, Lee B said:

Also,nonprescription medicines, toothpaste, toiletries and cosmetics.

I would guess that someone in a coma would not have expenses that weren't medically necessary.

[Catherine]

There is a difference between assisted living, residential care with medical assistance, residential care with extensive medical assistance (memory unit, etc.), and skilled nursing care required around the clock, as for someone in a coma. The last is considered 100% medical.