So long as you are paying the appropriate taxes for the aide’s employment (either through an agency or directly as an employer by withholding for state, local, and federal taxes as well as for social security and Medicare), and so long as the aide is providing nursing care (such as those services associated with caring for your wife’s condition) then the cost of a home health aide is deductible. The aide does not have to be a qualified nurse, just so long as his or her services are consistent with such nursing care. For example, services such as giving medications, providing assistance with bathing, grooming or feeding, or changing dressings would qualify as nursing services. Housekeeping activities would not qualify. You should keep documentation on the nursing activities performed by the aide (such as types of activities performed and approximate amounts of time spent performing these activities) as well as any medically-necessary supplies required for care of your wife.

As for supplies, if you provide meals for the aide, his or her portion of the cost of the food is deductible. Other medical supplies such as prescribed medications, bandages or other wound dressings, wheelchairs necessary for disability, and some other medically-related supplies are deductible as well.

You should consult with a tax accountant for final verification of the information presented here as well as for more detailed instructions.