Whether you’ve just started your search for an Assisted Living Facility or you’re already a resident, financial planning for this era of you or your loved one’s life is crucial. With Assisted Living costs on the rise, you might be looking for avenues to reduce costs. Some ways to offset costs are by looking into potential tax deductions. Here’s some information that we put together to help you and your financial situation.


To be eligible for a tax deduction for assisted living, a physician or nurse must certify that either:

  1. 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.


  1. 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.

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).


For more information on Tax Deductions, visit irs.gov.

If you have more specific questions, please contact your financial advisor or accountant.

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