Navigating the complexities of Assisted Living Finances can feel overwhelming, whether you’re just starting your search or already settled. Finding ways to ease financial burdens becomes crucial in this process. One often overlooked avenue is the potential for tax deductions related to senior care. However, understanding the specific rules governing these deductions is essential.
In this post, we explore the intricacies of tax deductions for Assisted Living, clarifying eligibility criteria, how to claim deductions and why these deductions are significant. Whether you’re a senior exploring living options or an adult child caring for an elderly parent, grasping Assisted Living tax deductions can greatly impact your financial planning.
To be eligible for a tax deduction for assisted living, a physician or nurse must certify that either:
The individual cannot perform two or more Activities of Daily Living (ADLs) without assistance. ADLs include bathing or showing, dressing, walking, grooming, eating and more.
The individual requires constant supervision due to cognitive ailment or impairment.
The patient must have a care plan that outlines the required assistance prescribed by a licensed health care provider. This means that a social worker, nurse or doctor needs to prepare an individualized plan for the patient that outlines the specific daily services that they will receive.
For Adult Children
If you’re the adult child of a senior and claim your parent as a dependent, you are eligible to claim their medical expenses on your taxes, if they meet the proper criteria. You must also provide more than half of your parents’ financial support for the year.
How to Receive Tax Deductions
According to the IRS, to receive tax deductions for Assisted Living or other senior care, you must itemize deductions on Schedule A (Form 1040), Itemized Deductions and the expenses are required to exceed 7.5% of the taxpayer’s adjusted gross income.
Common Assisted Living Tax Deductions
- Medication management
- ADL assistance (bathing, dressing, grooming)
- On and off-site therapies (medical treatment
- Transportation to and from medical care
- Wheelchairs
- X-Rays
- Lab Fees
Why Assisted Living?
Assisted Living helps fill in the gaps of daily living activities that you or your loved one might struggle with, while embracing independence and enjoying life.
At Trousdale Living Communities, our stimulating activities promote liberation while our caregivers lend support, sincere caring and health services on an individual basis. We offer Assisted Living at the following facilities: McKendree Village (Hermitage, Tennessee), Friendship Village (Dayton, Ohio), Gardens of Oakley (Cincinnati, Ohio), and the Palms of Sebring (Sebring, Florida).
All Your Needs. All Our Hearts.
At Trousdale Living Communities, a 501(c)3 nonprofit charitable organization, our goal is to care and provide for your loved one and embrace every resident as a person FIRST, so that you can have peace of mind that your parent or loved one is healthy and face. We are dedicated to serving the needs of our residents and patients with exceptional, compassionate, and loving care. Our highly trained and experienced team of nurses, CNAs, physical therapists, medical, and administrative staff provide you and your loved ones with preeminent care. It’s time to join a community of care, comfort, and compassion, a community that is consistently focused on your needs.
Resources
For more information on Tax Deductions, visit irs.gov.
If you have more specific questions, please contact your financial advisor or accountant.