Tax Deductions for Assisted Living

Assisted Living Services Are Tax-Deductible

Medical expenses can really add up. Did you know that there may be a way to write off those expenses at tax time?

Residents, family members, and others who pay for an individual’s care in an assisted living community can, in most cases, file the entire monthly cost of assisted living as a tax-deductible medical expense. Such information gives providers another tool regarding the affordability of assisted living when working with seniors and their family members.

Under HIPAA, expenses can be tax-deductible if such services are provided pursuant to a plan of care prescribed by a licensed health-care practitioner, and the personal care services are required by a person who:
• is unable to perform at least two activities of daily living, or
• has severe cognitive impairment and requires supervision to protect self and others from health and safety threats.
Under IRS rules Alzheimer's is categorized as a severe cognitive impairment, and is therefore fully tax deductible as a medical expense.

TAX DEDUCTION FOR MEDICAL EXPENSES

Deductions for medical expenses may be claimed whenever the total cost of these expenses exceeds 7.5 % of your adjusted gross income for the year.
Applies to:
• The costs of diagnosis, cure, mitigation, treatment, or prevention of disease,
and the cost for treatments affecting any part or function of the body.
• The alleviation or prevention of a physical or mental defect or illness.
Includes:
• The costs of equipment, supplies and diagnostic devices needed for these purposes.
• Dental expenses
• Premiums you pay for insurance that covers the expenses of medical care,
and the amounts you pay for transportation to get medical care.
• Amounts paid for qualified long-term care services and limited amounts
paid for any qualified long-term care insurance contract.


Thanks to Emeritus Senior Living for providing this information. Neither Starfish Resources nor Emeritus Sr. Living can provide tax advice; for more information on how to claim your medical expenses on your taxes please consult a personal tax advisor, tax preparer, or the IRS.

To contact Starfish Resources:
www.starfishresources.net
starfishresourcesa@gmail.com
(760) 522-6478