How does claiming health care deduction decrease your tax liability?

Answer 1

HEALTH CARE DEDUCTION. You can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your AGI (Form 1040, line 38).
In this publication, the term "7.5% limit" is used to refer to 7.5% of your AGI. The phrase "subject to the 7.5% limit" is also used. This phrase means that you must subtract 7.5% (.075) of your AGI from your medical expenses to figure your medical expense deduction.
You can find the below information by going toand using the search box for Publication 502 (2009), Medical and Dental Expenses

Nursing Services
You can include in medical expenses wages and other amounts you pay for nursing services. Services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. These services can be provided in your home or another care facility.
Generally, only the amount spent for nursing services is a medical expense. If the attendant also provides personal and household services, these amounts must be divided between the time spent performing household and personal services and the time spent for nursing services. However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Qualified Long-Term Care Insurance Contracts, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. See Publication 503, Child and Dependent Care Expenses.
You can also include in medical expenses part of the amount you pay for that attendant's meals. Divide the food expense among the household members to find the cost of the attendant's food. Then apportion that cost in the same manner as in the preceding paragraph. If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant.
Employment taxes, You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for a nurse, attendant, or other person who provides medical care. For information on employment tax responsibilities of household employers, Go to www.irs.gov

and use the search box see Publication 926, Household Employer's Tax Guide.



What Forms Must You File?
You must file certain forms to report your household employee's wages and the federal employment taxes for the employee if you pay any of the following wages to the employee.
*Social security and Medicare wages.
*FUTA wages.
*Wages from which you withhold federal income tax.
Form W-2. File a separate 2009 Form W-2, Wage and Tax Statement, for each household employee to whom you pay either of the following wages during the year.
Schedule H. Use Schedule H to report household employment taxes if you pay any of the following wages to the employee.
What Records Must You Keep?
All forms and instructions are available by going to irs.gov and using the search box for each form.
We would suggest that you may want to seek some face to face assistance about this matter.