Tax Deductibility for Assisted Living

You, or the person paying for your care, may be eligible for certain deductions on your federal tax return, depending on the type of services and the level of care you require.

The IRS allows deductions for the cost of housing and meals if you are receiving long-term care in a home or community for the aged due to chronic illness or the inability to live alone. Assisted living residents receiving personal care services may qualify for the deduction.

To qualify, you must require assistance with at least two activities of daily living (such as eating, toileting, transferring, bathing and dressing), and a physician must certify that you have been unable to perform these functions without assistance for at least 90 days.

The same deduction can be used for people who require substantial supervision to maintain their health and safety because of cognitive impairment such as Alzheimer’s disease.

An adult child paying for their parents’ care may also qualify for the tax deduction, if the parent is a dependent.

For a parent to qualify as a dependent, he or she must:
- be related to the child or have lived with the child for the entire year as a member of the household;
- be a U.S. citizen or resident, or a resident of Canada or Mexico, for some part of the calendar year in which the tax year began; and the child must have provided over half of the total support for the parent for the calendar year.

Tax deductions can be a useful way to alleviate the cost of care. However, please note that Heritage Senior Living does not provide tax advice for its residents, potential residents, or families, and this information should not be considered as such.

For more information about possible deductions, please consult with a tax adviser.