How do I calculate the deductible portion of a nursing home stay in 2026?

✓ Accepted answer

To calculate the deductible portion of a nursing home stay in 2026, you must first determine if medical treatment is the principal reason for residence and then isolate the medical costs from room and board expenses.

• Verify Eligibility: Under IRS rules, you can only deduct costs if the facility provides specific medical care and this care is the main reason for the stay. General room and board costs are not deductible.
• Split the Bill: Nursing home invoices typically combine housing and care. You must separate the amount attributable to medical services (nursing, therapy) from housing. If a single employee performs both medical and household duties, you must divide their pay based on time spent on each task; only the medical portion counts.
• Apply the AGI Threshold: On Schedule A of Form 1040, you can only deduct medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI). Sum all eligible medical costs, including qualifying nursing home fees, and subtract 7.5% of your AGI to find your deduction amount.
• Consider Premium Limits: If your expenses include long-term care insurance premiums, the IRS cap for 2026 is $4,960 for ages 61–70 and $6,200 for those 71 or older. Keep records of all payments not covered by insurance.
• Keep Detailed Records: Maintain itemized bills showing the breakdown between medical care and lodging. The IRS may request these to verify the split between deductible medical expenses and non-deductible housing costs.

If a family member is experiencing sudden confusion, difficulty breathing, or other acute symptoms that do not resolve with standard care, contact emergency services immediately.

admin · 2026-10-19 03:48:08