Question

Jerry and Ernie are comparing their tax situations. Both are paying all of the nursing home expenses of their parents. Jerry can include the expenses in computing his medical expense deduction, but Ernie cannot.

Complete the statements below on why their tax situations may differ.
The cost of care in a nursing home, along with ___, ___with the costs for medical or nursing care if the primary reason is ___.
If the primary reason for being there is personal, ___ costs for medical or nursing care ___ in the total of deductible medical expenses, ___.
Consequently, it appears that Jerry's parents are in the nursing home ___, while Ernie's parents are in the nursing home ___.

Answer 1

The cost of care in a nursing home, along with the cost of meals and lodging, should be included with the costs for medical or nursing care if the primary reason is to obtain medical care for their parents.

If the primary reason for being there is personal, the total costs for medical or nursing care should be included in the total of deductible medical expenses, but the costs of meals and lodging should not be included.

Consequently, it appears that Jerry's parents are in the nursing home to obtain medical care, while Ernie's parents are in the nursing home for personal reasons other than medical care.