Are my Mother's Assisted Living Facility Expenses Tax Deductable?

[WhoDonnit]

Jurisdiction

California

Hi, thanks in advance for any information on this. My mother is 94 years old and has recently moved out of her single family home where she was living by herself into an "Assisted Living Facility". It is basically an apartment where she has caregivers. She is wheelchair bound and needs assitance with pretty much every move. She asked me the other day, as we were sending notice to the IRS that her address had changed, "Are my expenses here tax deductible"? Can anyone help to answer that question?

 

[adjusterjack]

Stick around. @Tax Counsel may arrive soon and answer your questions.

 

[army judge]

She asked me the other day, as we were sending notice to the IRS that her address had changed, "Are my expenses here tax deductible"? Can anyone help to answer that question?

The Internal Revenue Service allows for several medical tax deductions, including some assisted living expenses.

To take these deductions, the total amount of medical expenses must equal more than 7.5% of the adjusted gross income for the person taking the deduction. When this is the case, you can claim the expenses that exceed that amount.

For example, if your parent has an adjusted gross income of $50,000, they must have paid more than $3,750 in qualifying medical expenses to be able to take the deduction. You can add qualifying assisted living expenses to other qualifying medical expenses to reach this number. So, if your parent had $5,000 in expenses, they could claim $1,250 in deductions.

Assisted living expenses must also meet medical requirements set out by the IRS to qualify for deductions. To qualify, the expenses must be related to medical care, and a doctor must have certified that the person cannot care for themselves.

Assistance With Two or More ADLs

The certification must include documentation showing that the person needs daily help with two or more activities of daily living (ADLs) for 90 days or more. In other words, your parent must be unable to perform two or more of the following for their assisted living expenses to qualify as tax deductible:

• Eating/drinking
• Bathing
• Toileting
• Dressing
• Managing incontinence
• Transferring themselves from various locations, such as from a bed to a chair or room to room

Assistance Due to Cognitive Impairment

If a doctor certifies that a person requires assistance with ADLs or other care because they have a cognitive impairment, this may also qualify as a tax-deductible assisted living expense. This is often the case when someone is dealing with an Alzheimer's or another form of dementia diagnosis.

Professional Care Plan

In addition to a doctor's certification regarding the necessary level of care, individuals who want to deduct their assisted living expenses need a written professional care plan. This is a plan from the assisted living staff that lists all qualifying services provided to the person. This plan or separate documentation should list the specific fees for these necessary medical costs separately from fees for lifestyle expenses, lodging and meals.

A Guide to Assisted Living Tax Deductions

Your parents' assisted living expenses might be tax deductible. Find out whether you or they can use these costs to reduce your tax burdens.

www.payingforseniorcare.com

Tax Deductions for Assisted Living Costs

Assisted living costs continue to rise every year. But did you know some of those costs may be tax deductible?

www.elderlawanswers.com

Is Assisted Living Tax Deductible in California? – Senior Placed

seniorplaced.com

 

[WhoDonnit]

The Internal Revenue Service allows for several medical tax deductions, including some assisted living expenses.

To take these deductions, the total amount of medical expenses must equal more than 7.5% of the adjusted gross income for the person taking the deduction. When this is the case, you can claim the expenses that exceed that amount.

For example, if your parent has an adjusted gross income of $50,000, they must have paid more than $3,750 in qualifying medical expenses to be able to take the deduction. You can add qualifying assisted living expenses to other qualifying medical expenses to reach this number. So, if your parent had $5,000 in expenses, they could claim $1,250 in deductions.

Assisted living expenses must also meet medical requirements set out by the IRS to qualify for deductions. To qualify, the expenses must be related to medical care, and a doctor must have certified that the person cannot care for themselves.

Assistance With Two or More ADLs

The certification must include documentation showing that the person needs daily help with two or more activities of daily living (ADLs) for 90 days or more. In other words, your parent must be unable to perform two or more of the following for their assisted living expenses to qualify as tax deductible:

• Eating/drinking
• Bathing
• Toileting
• Dressing
• Managing incontinence
• Transferring themselves from various locations, such as from a bed to a chair or room to room

Assistance Due to Cognitive Impairment

If a doctor certifies that a person requires assistance with ADLs or other care because they have a cognitive impairment, this may also qualify as a tax-deductible assisted living expense. This is often the case when someone is dealing with an Alzheimer's or another form of dementia diagnosis.

Professional Care Plan

In addition to a doctor's certification regarding the necessary level of care, individuals who want to deduct their assisted living expenses need a written professional care plan. This is a plan from the assisted living staff that lists all qualifying services provided to the person. This plan or separate documentation should list the specific fees for these necessary medical costs separately from fees for lifestyle expenses, lodging and meals.

A Guide to Assisted Living Tax Deductions

Your parents' assisted living expenses might be tax deductible. Find out whether you or they can use these costs to reduce your tax burdens.

www.payingforseniorcare.com

Tax Deductions for Assisted Living Costs

Assisted living costs continue to rise every year. But did you know some of those costs may be tax deductible?

www.elderlawanswers.com

Is Assisted Living Tax Deductible in California? – Senior Placed

seniorplaced.com

Thank you very much for the answers and I will read all of the references that you have listed. I beleive that the billing from the assisted living faciltiy itemizes the monthly bill and seperates rent from the assistance with daily need, probably in part for this purpose. Best Regards!