Family caregivers who itemize can deduct unreimbursed dementia medical costs on Schedule A only above 7.5% of adjusted gross income, the IRS says in its medical expense guidance. Working caregivers may also claim a dependent-care credit and a $500 credit for an eligible dependent parent. Adjusted gross income is income after allowed adjustments and before itemized deductions. That floor means single bills rarely help, while steady dementia-care costs add up fast.
Medical information disclaimer: This article is for general educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a physician or other qualified health professional about symptoms, medications, tests, or treatment decisions.
Table of Contents
- Which dementia care costs count?
- Can you include a parent's bills?
- What help is available if you work and pay for care?
- What records protect your claim?
Which dementia care costs count?
IRS Publication 502 counts qualified long-term care as a medical expense. The care must serve a chronically ill person under a licensed practitioner's plan, as the IRS explains in the medical expense publication. That includes maintenance and personal care for dementia, not only clinic care.
Under IRS rules, severe cognitive impairment needing substantial supervision meets the chronic-illness test. So physician-certified dementia care, home aides, and medically necessary memory-care costs can qualify. Keep the certification and plan with your receipts.
Can you include a parent's bills?
You can include bills you paid for a parent who would be your dependent except for the gross-income test or a joint return. IRS Publication 502 allows that exception for medical costs. You must still pay the bill and receive no reimbursement.
Intuit TurboTax explains the dependent test for an elderly parent. You generally must provide over half their support, and their gross income must stay under $5,200 for 2025 ($5,050 for 2024). If those points fit, add the parent's qualified bills to your own unreimbursed total. Then apply the 7.5% floor on Schedule A.
- you paid over half the parent's yearly support
- the parent's gross income was below the yearly limit
- you paid the medical bill directly and kept proof
What help is available if you work and pay for care?
The IRS offers the Child and Dependent Care Credit for working caregivers in its dependent-care guidance. You must pay for care of an incapacitated spouse or dependent who lived with you over half the year. The care must let you work.
The credit generally covers up to $3,000 for one person or $6,000 for two or more, claimed on Form 2441. IRS guidance also describes a $500 nonrefundable Credit for Other Dependents for an eligible parent who is not a qualifying child. The $500 credit does not refund extra tax beyond zero.
What records protect your claim?
There is no separate federal caregiver credit in current law. The Alzheimer's Association reports a proposed $5,000 Credit for Caring Act was only introduced, in its 2025 caregiver-credit update. Use current deductions and credits instead.
Build one folder for the tax year and save proof as you pay. Keep the physician certification, care plan, invoices, payment proof, reimbursement statements, and your Form 2441 and Schedule A work. File the care credit on Form 2441 and the medical costs on Schedule A.
