List of Assisted Living Tax Deductions

While it may not seem like there are some instances where tax deductions be can claimed if you are in an assisted living facility, there are quite a few if you know where to look. This list of assisted living tax deductions gives you the inside scoop on the various money-saving opportunities available to you. The tax deductions could be deducted as a Medical Expense according to the IRS.

1) Is Assisted Living Tax Deductible?

The short answer is yes. However the IRS does require that a resident to be receiving medical care while living at the facility. There is indeed a tax deduction for assisted living  if the resident is receiving medical care, according to the IRS.

Tax deduction for Assisted Living would be categorized as a Medical Expense according to the IRS. Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your Adjusted Gross Income.

2) What Assisted Living Expenses are Tax Deductible?

Qualifying Tax Deductible Assisted Living (Medical Expenses) are listed below :To be announced from U.S. Master Tax Guide

Nursing

Nursing Services

Lodging & Meals

 

3) Qualifications for Assisted Living to be Tax deductible

To be announced from U.S. Master Tax Guide

 

4) Calculating your Assisted Living Tax Deduction (Medical Expense)

For the tax year 2022, any qualifiying medical expenses that make up more than 7.5% of the individuals adjusted gross income can be deducted. First add up all your qualifying medical expenses for the year. Second subtract 7.5% of your adjusted gross income. If the number is positive, congratulations you have successfully determined your assisted living tax deduction. If the number is negative then you not have an assisted living tax deduction.

Sum of Qualifying Medical Expenses – Adjusted Gross Income = Assisted Living Tax Deduction (Medical Expense)

5) Do Nursing Home Residents have to file taxes?

 

6) Filing Taxes for someone in a Nursing Home

 

 

 

7) Independent Living Tax Credit

Credit for the Elderly or the Disabled

8) Basic Medical Expense Insurance

When obtaining medical, dental, vision, and life insurance for you and your family, you can claim that as a tax deduction. If you need to make home improvements to accommodate people with disabilities, you can deduct those costs as well. You might even be able to save some money on your annual tax bill by donating stock or cash to organizations like AARP or Alzheimer’s organizations. The best part is that these are all deductions that are tax-deductible, meaning they reduce your taxable income. This means more of your hard-earned money stays in your pocket!

Bottom line

If you itemize deductions, you can take a deduction of up to $3,000 annually for health care costs and a deduction of up to $300 annually for long-term care insurance premiums. But an assisted living facility is not considered medical care, therefore you cannot deduct its cost from your taxes.

For more information about assisted living or any other medical expense tax deductions, visit irs.gov or consult with a tax professional in your area.