What can be included as Qualified Care Expenses?
Qualified care expenses are expenses for home health agency services, companionship services (see below), personal care attendant services, homemaker services, adult day care, respite care, and other expenses that are deductible medical expenses under federal income tax law.
To qualify, the expense must have the following characteristics:
- Provided to or for the benefit of (or needed by the taxpayer to care for) a qualifying family member;
- Provided by an organization or individual not related to the taxpayer or the qualifying family member; and
- Not compensated for by insurance or a federal or state assistance program.
Companionship services are services that provide fellowship, care, and protection for a person who is unable to care for his or her own needs because of advanced age or a physical or mental disability. These services include household work directly related to the care of the aged or disabled person, such as meal preparation, bed making, washing clothes, and other similar services. These services may also include household work not directly related to the care of the aged or disabled person if the time it takes to do this work during any week does not exceed 20% of the total hours worked during that same week.
Companionship services do not
include services which require, and are performed by, trained personnel. This includes a registered or practical nurse, or services to care for and protect infants and children who are not physically or mentally disabled.
Qualified care expenses deducted for federal income tax purposes are not eligible for the credit