Assisted Living Costs and Tax Deductions

What assisted living expenses are tax deductible?

Assisted Living Costs and Tax Deductions

Taking care of a loved one’s long-term care needs is a time consuming commitment that can take more time than a full-time job. Add tax season the equation and it’s easy to feel overwhelmed. This tax season, Summerset would like to alleviate a small amount of that stress by sharing a few assisted living related tax tips.

1. Did You Know Some Costs of Assisted Living and Alzheimer’s Care May be Tax Deductible?

Qualified long-term care services include personal care services provided to a resident daily. These services include personal hygiene care, dressing, transferring, meal preparation and cleaning services. The Health Insurance Portability and Accountability Act (HIPPA) states that these services may be tax deductible as unreimbursed medical expenses on Schedule A.

2. What is the “Chronically Ill” Requirement?

Residents who receive the services mentioned above must also meet the chronically ill requirement. “Chronically ill” is defined as a senior who is unable to perform two or more daily living tasks without assistance.  This also includes those needing constant supervision and care because of Alzheimer’s and Dementia. The resident must have been declared chronically ill by a licensed doctor within the previous 12 months.

3. Should You Itemize?

Itemize, itemize, itemize…also remember that assisted living expenses must total more than 7.5% of the taxpayer’s adjusted gross income. If you’re covering expenses for a parent, you can typically take advantage of these savings if you provide more than 50% of their support costs.

Seek Professional Tax Advice. While these tips are helpful, they’re just a starting point in helping you enjoy the tax benefits available to those caring for loved ones living in assisted living communities. Seek professional advice from a certified tax advisor. In the meantime, here’s more detailed information in the IRS’ Medical and Dental Expenses and Dependents, Standard Deduction, and Filing Information publications.

As you consider care options for your loved one, you can rest assured that Summerset’s premiere community where guests will enjoy an environment that makes them feel at home. Learn more about Summerset.

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Your Home Away from Home | Located in Atlanta, Georgia, Summerset Assisted Living Community is focused on providing top quality, excellent, compassionate care for those we serve. Schedule a tour today or give us a call at (470) 231-2357!



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