In many cases, children will share the medical care expenses, such as nursing home costs of a parent. Sharing the expense decreases the likelihood that anyone can get a medical expense deduction. Instead, designate one family member who will benefit from the medical expense deduction as the person who pays. The other family members can give their share to the payer. From year to year, the family members can take turns paying the bills.
Specific Details
The parents reduced their taxable income by $5,000 by deducting the medical expenses paid for other people. Since the parents income was taxed at the 30% tax bracket, the income reduction may decrease their income taxes by $1,500 ($5,000 x 30%).
Potential Savings
If you are in a combined (federal, self-employment, and state) tax bracket of 30%, you could reduce your taxes up to $300 for every $1,000 of income reduction by deducting the medical expenses you pay for other people.