Yes, certain costs associated with assisted living may be tax-deductible, but it depends on your specific situation.
If the assisted living costs are for medical care, they can potentially be deducted as medical expenses on your taxes. However, there are a few conditions:
Medical Care Costs: The portion of the assisted living fees that are directly related to medical care (such as nursing services, personal care, and help with activities of daily living) can be considered a medical expense. These may be deductible if they are deemed necessary medical care.
Eligibility: To qualify, your total medical expenses (including assisted living costs) must exceed 7.5% of your adjusted gross income (AGI) for the tax year.
Non-Medical Costs: The cost of room and board (such as rent for the living space, food, and housekeeping) is generally not deductible unless it is tied to medical care.
Long-Term Care Insurance: If you have long-term care insurance that covers assisted living services, the payments may also be deductible.
It’s a good idea to consult with a tax professional or accountant who can evaluate your specific situation and help you navigate the tax rules.
For more information, contact www.seniorhousingsolutions.net