Nursing Home and Assisted Living Costs: Tax Deductible or Not?

Nursing homes and assisted living facilities provide essential care for elderly and disabled individuals who require assistance with daily living activities. However, many people are uncertain whether the costs of these facilities are tax deductible or not. The purpose of this article is to provide a comprehensive overview of nursing home and assisted living costs and the associated tax implications.

Understanding Nursing Home and Assisted Living Costs

Nursing homes and assisted living facilities to provide various services, including room and board, medical care, and personal assistance. The cost of these facilities varies depending on the level of care required and the facility’s location. Generally, nursing homes are more expensive than assisted living facilities as they provide a higher level of care.

Are Nursing Home and Assisted Living Costs Tax Deductible?

In general, the costs of nursing homes and assisted living facilities are not tax deductible. However, a few exceptions may make these costs tax deductible. Suppose a person receives medical care in a nursing home or assisted living facility. In that case, they may be able to claim a portion of the costs as a medical expense on their tax return.

Medical Expense Tax Deduction

The medical expense tax deduction allows individuals to deduct medical and dental expenses that exceed 7.5% of their adjusted gross income (AGI). This means that if a person’s medical expenses are higher than 7.5% of their AGI, they may be able to deduct the excess amount from their taxable income.

Qualifying Medical Expenses

To claim the medical expense tax deduction, the expenses must be considered qualifying medical expenses. Qualifying medical expenses include the cost of nursing home care if the primary reason for being in the facility is for medical care. This means that if a person is in a nursing home or assisted living facility primarily for medical reasons, they may be able to claim the costs as a medical expense.

Proving Medical Necessity

In order to claim the medical expense tax deduction for nursing home or assisted living costs, a person must be able to prove that the primary reason for being in the facility is for medical care. This may include documentation from a doctor or medical professional stating that the individual requires the care provided in a nursing home or assisted living facility.

Conclusion

In conclusion, nursing home and assisted living costs are generally not tax deductible. However, if a person is receiving medical care in these facilities, they may be able to claim a portion of the costs as a medical expense on their tax return. It is important to understand the tax implications associated with nursing home and assisted living costs and to gather all necessary documentation to support a medical expense tax deduction.

We understand that making a change can be difficult, but it’s important to remember that you’re not alone. That’s why we’re here to support you every step of the way. If you’re feeling overwhelmed or unsure, just pick up the phone and call 480-267-9200. Our friendly MD Senior Living team will listen to your concerns and offer guidance and encouragement. You deserve to live a fulfilling life, and taking this first step toward change can be the beginning of an incredible journey.