Publication 554 - Older Americans' Tax Guide - 2004 Page 22
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31Home Improvements
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The lodging is primarily for, and essential to, medical
care.
Only reasonable costs to accommodate a home to a
•
person’s disabled condition are considered medical care.
The medical care is provided by a doctor in a li-
Additional costs for personal motives, such as for architec-
censed hospital or in a medical care facility related
tural or aesthetic reasons, are not medical expenses. Pub-
to, or the equivalent of, a licensed hospital.
lication 502 contains additional information and examples,
•
The lodging is not lavish or extravagant under the
including a capital expense worksheet, to assist you in
circumstances.
figuring the amount of the capital expense that you can
•
include in your medical expenses. Also, see Publication
There is no significant element of personal pleasure,
502 for information about deductible operating and upkeep
recreation, or vacation in the travel away from home.
expenses related to such capital expense items, and for
information about improvements, for medical reasons, to
The amount you include in medical expenses for lodging
property rented by a person with disabilities.
cannot be more than $50 per night for each person. You
can include lodging for a person traveling with the person
receiving the medical care. For example, if a parent is
traveling with a sick child, up to $100 per night can be
included as a medical expense for lodging. (Meals are not
5.
included.)
Credits
Nursing home. You can include in medical expenses the
cost of medical care in a nursing home or a home for the
aged for yourself, your spouse, or your dependents. This
This chapter briefly discusses the credit for the elderly or
includes the cost of meals and lodging in the home if a
disabled, the child and dependent care credit, and the
main reason for being there is to get medical care.
earned income credit. You may be able to reduce your
federal income tax by claiming one or more of these cred-
Do not include the cost of meals and lodging if the
its.
reason for being in the home is personal. However, you
can include in medical expenses the part of the cost that is
for medical or nursing care.
Credit for the Elderly
Transportation
or the Disabled
Amounts paid for transportation primarily for, and essential
to, medical care qualify as medical expenses.
This section explains who qualifies for the credit for the
elderly or the disabled and how to figure this credit. For
more information, see Publication 524, Credit for the Eld-
You can include:
erly or the Disabled.
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Bus, taxi, train, or plane fares or ambulance service
You can take the credit only if you file Form 1040
!
payments,
or Form 1040A. You cannot take the credit if you
•
file Form 1040EZ.
CAUTION
Transportation expenses of a nurse or other person
who can give injections, medications, or other treat-
ment required by a patient who is traveling to get
Credit figured for you. If you choose to have the IRS
medical care and is unable to travel alone, and
figure the credit for you, see Publication 524. If you want
the IRS to figure your tax, see Publication 967, The IRS
•
Actual car expenses, such as gas, oil, parking fees,
Will Figure Your Tax.
and tolls. Instead of deducting actual car expenses,
you can deduct 14 cents a mile for use of your car for
Can You Take the Credit?
medical reasons. Add the cost of parking fees and
tolls to this amount.
You can take the credit for the elderly or the disabled if:
You cannot include depreciation, insurance, or gen-
•
You are a qualified individual, and
eral repair and maintenance expenses on your car, no
•
matter which method you choose to figure the deduc-
Your income is not more than certain limits.
tion.
See Figures 5-A and 5-B, later.
Do not include transportation expenses if, for
Qualified Individual
!
purely personal reasons, you choose to travel to
another city for an operation or other medical care
You are a qualified individual for this credit if you are a U.S.
CAUTION
prescribed by your doctor.
citizen or resident, and either of the following applies.
Page 22
Chapter 5 Credits
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