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What part of the cost of living in an assisted living

Customer Question
What part of the...

What part of the cost of living in an assisted living facility is fed tax deduc?

Accountant's Assistant: Which tax year is the deduction for?

2017

Submitted: 23 days ago.Category: Tax
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5/27/2018
Tax Professional: Barbara, Enrolled Agent replied 23 days ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,146
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The real key is the amount that was for medical care, assisted living is not the same as nursing home care where there is no ability to care for ones self.

These are the basic rules concerning the tax deductibility of Assisted Living and Alzheimer's care expenses:

According to the 1996 Health Insurance Portability and Accountability Act (HIPAA), “long-term care services” may be tax deductible as an unreimbursed medical expense on Schedule A. Qualified long-term care services have been defined as including the type of daily “personal care services” provided to Assisted Living residents, such as help with bathing, dressing, continence care, eating and transferring, as well as “maintenance services”, such as meal preparation and household cleaning.

Assisted Living residents seeking tax deductions for their services must qualify as “chronically ill”. This definition refers to seniors who are unable to perform two or more “Activities of Daily Living” (eating, transferring, bathing, dressing and continence) without assistance, or who need constant supervision because of a “severe cognitive impairment” such as Alzheimer’s disease or related dementias. The Assisted Living resident must have been certified within the previous 12 months as “chronically ill” by a licensed health care practitioner.

In order to qualify for a deduction, personal care services must be provided pursuant to a plan of care prescribed by a licensed health care practitioner. Many Assisted Living communities have on staff a licensed nurse or social worker who prepares a plan of care, sometimes called a “Wellness Care Plan,” in coordination with the resident’s physician which outlines the specific daily services the resident will receive in the community.

In order to take advantage of deductions, a taxpayer must be entitled to itemize his or her deductions. Additionally, long-term care services and other unreimbursed medical expenses must exceed 7.5% of the taxpayer’s adjusted gross income. (Generally, a taxpayer can deduct the medical care expenses of his or her parent if the taxpayer provides more than 50% of the parent’s support costs.)

https://ttlc.intuit.com/questions/3612566-how-do-you-determine-what-portion-of-assisted-living-is-deductible-and-what-is-not-is-this-provided-by-the-facility

https://www.after55.com/blog/assisted-living-costs-tax-deductible/

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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