Can You Claim Tax Deductions for Nursing Home and Assisted Living Costs?

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 unsure whether the costs of these facilities are tax deductible or not. This article aims to provide a comprehensive overview of nursing home and assisted living costs and the associated tax implications. 

The costs of nursing homes and assisted living facilities vary 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. 

In general, the costs of nursing homes and assisted living facilities are 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. 

The medical expense tax deduction allows individuals to deduct medical and dental expenses that exceed 7.5% of their adjusted gross income (AGI). Qualifying medical expenses include the cost of nursing home care if the primary reason for being in the facility is for medical care. To claim the medical expense tax deduction, 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. 

It's essential 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. The friendly MD Senior Living team is available to offer guidance and encouragement to those considering a move to assisted living. We understand that making a change can be challenging, but taking this first step toward change can be the beginning of an incredible journey toward a fulfilling life.