Is Assisted Living Tax Deductible?
Assisted living can be a wonderful option for seniors who require some extra support and care in their daily lives. If you meet certain criteria, some of the costs associated with assisted living might be tax deductible.
Under the Internal Revenue Code (IRC) Section 213:
- If you live in a senior living community primarily for the need and availability of medical care, then all or substantially all of the amounts paid to the community are fully deductible.
- If you live in a senior living community primarily for personal or family reasons, only the portion of fees related to medical care on your taxes can be deducted.
In either case, the costs must actually be paid during the tax year and not be reimbursed by another party.
It's important to note that the Internal Revenue Service (IRS) has specific guidelines and limitations for these deductions, so it's recommended to consult with a tax professional or financial advisor to determine eligibility and maximize potential benefits.
Additional Criteria
You must also meet some additional criteria to be eligible for this deduction, such as:
- The taxpayer must be authorized to itemize their deductions
- Long-term care services and any other medical expenses that are not reimbursed must surpass 7.5% of the taxpayer's adjusted gross income1
You may be able to claim deductions for the medical expenses of your parent if you cover over half of your parent's support expenses.
How Can Brookdale Help?
Our Brookdale assisted living and Alzheimer’s and dementia care communities have a licensed nurse on staff who provides individually customized plans for you. We start with an assessment to learn how we can support you. We then utilize that assessment to create your personalized service plan. This personalized assessment may meet the certification requirement.
However, for your tax files, we recommend that you obtain a letter addressing the health condition and care needs from a licensed health care practitioner outside of your Brookdale community.
Brookdale Senior Living cannot and does not provide professional tax advice. The above content is shared for educational and informational purposes only. The content is not intended to be a substitute for professional tax or financial advice and should not be relied upon for making tax, financial or other decisions. Please consult your attorney, tax advisor or financial advisor before acting on any content herein.