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Can I deduct a relative’s medical expenses?

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. I picked up $12,000 of my mother’s medical rehab expenses that weren’t covered by insurance. Can I deduct those? M.T.G., Van Nuys, Calif.

A. Maybe. Generally, you can only deduct medical expenses paid for yourself, your spouse or a dependent. Your mother won’t qualify as your dependent if she has gross taxable income above $4,000 in 2015. However, if your mother would otherwise qualify as your dependent but for the gross income limit (i.e., you provide more than half of her annual support), you can add medical expenses paid for her to your own, according to IRS Pub. 502 (Medical and Dental Expenses).

Tip: Medical expenses are deductible above 10% of your adjusted gross income (AGI). The AGI limit is 7.5% for expenses claimed by a taxpayer age 65 or older.

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