Did you know that if you or your family member lives in a senior living community, a portion of your living expenses may qualify for medical expense tax deduction? If you are still considering whether or not to stay in an assisted living home, read on to find out more about senior living tax deductibles so that you can make a more informed decision.
Can Assisted Living be Written Off on Taxes?
Generally, a number of medical expenses that are included in assisted living’s fees can be written off if you or a loved one stays in an assisted living community. Other long-term care services that are qualified may also be written off taxes. Of course, there are some restrictions and qualifications that apply.
Furthermore, the financial burden that is put on family members who have to pay for assisted living for a loved one or a family member is recognized by the federal government. This means that in the case where the loved one staying in an assisted living community is considered a dependent, then family members will be eligible for the deduction. In addition, if you are pay more than 10% in support as part of a “multiple support agreement” which pays at least half or more of the resident’s support, you may also be able to take the deduction.
A grandparent, parent, father-in-law or mother-in-law is usually considered to be a qualifying relative by the Internal Revenue Service.
What are the Requirements for Senior Living Tax to be Deductible?
If you are looking to deduct some medical expenses, the following criteria must be met by the resident living in the senior living community.
- Residents should have a plan of care that is prescribed by a doctor, nurse or social worker. Usually, a plan of care is developed by senior living communities depending on a licensed healthcare provider’s medical evaluation, with the input of the caregiver and resident.
- A doctor, nurse or licensed healthcare professional must certify that a resident has a chronic illness; or not able to perform two everyday activities on their own including dressing, bathing continence and more; or if the resident requires constant supervision because of Alzheimer’s disease, dementia, cognitive impairment for a period of 90 days or more.
In cases where a resident does not have a chronic illness, they may still be able to get their medical expenses deducted. In such cases, it is best to check with tax advisors and assisted living communities that are able to provide specific information regarding this.
If you are looking for an assisted living community, look no further than Conservatory at Keller Town Center. We provide exclusive senior programs that will keep your everyday packed with fun and excitement. Our team of staff is highly trained and has the knowledge and passion to work with residents and help all residents settle into their living communities. Feel free to contact us to find out more about what we have to offer in our senior living community today!
