You may be eligible for certain deductions on your federal tax return depending on the types of services and the level of care you require.
Tax deductions can be useful in balancing the cost of senior living. Older adults may be eligible for certain deductions on their federal tax return, depending on the type of services and the level of care they require.
The IRS allows deductions for the cost of housing and meals for seniors receiving long-term care in a home or community due to chronic illness or the inability to live alone. Assisted living or supportive living residents may qualify for these deductions if a physician certifies that they have been unable to perform at least two activities of daily living (such as eating, bathing or getting dressed) without assistance for at least 90 days. The same deductions can apply to those who require substantial supervision because of a cognitive impairment, such as Alzheimer’s disease.
A child paying for a parent’s care may also qualify for the tax deductions, if the child can claim the parent as a dependent.
While we’re happy to provide this introduction to the possible tax benefits of senior living, we encourage you to consult a tax advisor for further information.
Senior Living Consultants