Even with excellent health insurance and medicare, medical expenses tend to add up. Particularly in the case of senior citizens who need long-term medical care. Sometimes these costs can be as much as $280,000 per year and burn a hole in your pocket. Thus, it is necessary for elders and their family members to understand the tax deductions seniors and retirees can claim against medical expenses.

Some overlooked medical expenses that can be tax-deductible are:

1. Home aides and caregivers

Sometimes, when the elderly individual is disabled or requires round-the-clock care, a caregiver is appointed. The caregiver lives with the senior citizen as a home health aide. If thought out properly, you can maximize your tax deductions for a home health aide.

Firstly, you need to decide whether you will be paying your home aide as an individual contractor or as an employee. If you decide on the latter, you will need to withhold their taxes and at the end of each year send them the W-2 form. Also, remember to take down the employee ID number of your caregiver from the IRS. The I-9 or Employee Eligibility Form is necessary to prove that the caregiver is eligible to work in the USA. Check with your insurance provider to see if they cover costs for a home aide. If not, then it is a wise idea to get yourself additional coverage. Making a formal contract with the caregiver, outlining their work hours, payment details, etc. also makes it easier to get Medicare coverage.

2. Medical equipment

Medical equipment falls into two main categories, namely durable equipment and non-durable equipment. Goods that are not worn out easily and which you won’t buy often are durable medical equipment. These include wheelchairs, mobility assistance devices, furniture, service animals, etc. Durable medical equipment is often an expensive purchase. On the other hand, non-durable equipment is consumables that are used up quickly. These include medication, nutritional supplements, footwear, adult diapers, etc.

Durable medical equipment is a part of the tax deductions seniors and retirees can claim if a licensed physician orders it to alleviate physical or mental illnesses. If purchased for general health, these goods might not be tax-deductible. If you are renting the equipment or paying monthly installments for it, you must deduct tax only on the cost of the equipment of the current year.

3. Nursing homes and assisted living facilities

When it comes to health care, some additional tax deductions seniors and retirees can claim are for nursing homes or assisted living facilities. If your primary objective of being in a nursing home is a medical treatment, then you can write-off the cost of food and lodging in these facilities as a deduction, along with nursing and medical fees. However, if you are living in a care home for personal reasons then food and lodging are not tax-deductible.

4. Home modifications

If you are re-doing your home to suit your current physical condition or making additions to it due to medical reasons, you might be eligible for a tax deduction. For example, an elderly person who has chronic lung disease might install a humidifier in their home. This helps them breathe easy and therefore counts as a necessary medical supply.

5. Transportation

If the elderly person has to travel to access medical care, they can write it off as a tax deduction as well. Airplane tickets to travel to another country for treatment, bus tickets to visit a specialist, etc. are all tax-deductible. Keep in mind that you have to prove they were necessary for medical reasons.