Is Assisted Living Tax Deductible?

Author

Five Star- FL

For more information about the author, click to view their website: Five Star Senior Living

Posted on

Aug 28, 2023

Book/Edition

Florida - Southwest

share-this
Share This

Creating a realistic budget for a parent’s move to an assisted living community involves many factors. Once you have a reasonable expectation of how much the monthly fee will be, you can begin to outline financing. For many, this becomes a family affair.

It’s common for adult children to pitch in and help pay for care if a parent’s income and assets fall a little short. When that happens, a question that often arises is if assisted living is tax deductible. Unfortunately, the answer is more than a little complicated.

Assisted Living Expenses and Tax Deductions

While some families aren’t aware that they may be entitled to a tax deduction, others who do know about it, find the process too confusing to navigate. Much of the uncertainty stems from the challenge of determining what portion of a senior’s monthly fees are considered medical care. Another difficulty is figuring out if a senior meets the criteria to be a dependent.

There isn’t a quick answer to either of those issues. Some senior living providers can offer a breakdown on which monthly expenses are considered as medical care and which are custodial. This can help address the first issue. The second will be a bit more complex.

Since we aren’t in the business of offering tax advice, we generally suggest families enlist the services of a tax advisor with knowledge of the senior care industry. Before your meeting, it may be helpful to review several areas of the tax code that pertain to senior care and tax deductions:

  • IRS Tax Publication 502: This publication outlines the medical and dental expense regulations. It will give you a better understanding of what the IRS considers to be medical care and what financial threshold you must meet. This section of the IRS code also includes the rule on what a “qualifying relative” is. That’s important for to help determine if the relationship to your family member meets the criteria.
  • IRS Tax Publication 503: Like publication 502, IRS publication 503 further explains what dependent care expenses are. It also outlines which expenses you can deduct for a loved one’s medical care.

Other Ways to Fund Assisted Living for a Loved One

There are other programs that may help pay for a senior’s move to an assisted living community:

  • Aid and Attendance Benefit for veterans
  • Long-term care insurance, which often helps pay for more than just nursing homes
  • Bridge loans to cover expenses while families liquidate other assets
  • Life-settlement funding that pays you for greater than face value of a life insurance policy

The team at Five Star Senior Living can review these and other options in greater detail when you visit. You might also find it helpful to download our Senior Living Funding GuideThis free eBook is a great resource for families to read and share.

Other Articles You May Like

Healthy Vision: Tips for Saving Your Eyesight

Our eyes are incredibly precious, yet its easy to take our vision for granted until problems arise. Lets focus on proactive steps to maintain and improve our eye health. Here are some tips to keep your vision in top shape:Schedule Regular Eye Exams:One of the best ways to safeguard your vision is by scheduling regular eye exams. Comprehensive eye exams can detect vision problems early on, allowing for prompt treatment and prevention of further complications. Make it a priority to see your eye doctor at least once a year, even if you dont currently wear glasses or contact lenses.Protect Your Eyes from UV Rays: Just like your skin, your eyes can be damaged by the suns harmful UV rays. Whenever youre outdoors, especially on bright, sunny days, wear sunglasses that offer UV protection. Look for sunglasses that block 100% of UVA and UVB rays to shield your eyes from potential damage. Give Your Eyes a Break from Screens: In todays digital age, many of us spend a significant amount of time staring at screens, whether its for work, leisure, or staying connected. Prolonged screen time can lead to digital eye strain, characterized by symptoms like dry eyes, blurred vision, and headaches. To reduce eye strain, follow the 20-20-20 rule: every 20 minutes, take a 20-second break and look at something 20 feet away.Eat a Balanced Diet:Nutrition plays a crucial role in maintaining eye health. Incorporate foods rich in vitamins and antioxidants, such as leafy greens, colorful fruits and vegetables, fish high in omega-3 fatty acids, and nuts and seeds. These nutrients can help protect against age-related vision problems like macular degeneration and cataracts.Practice Good Eye Hygiene:Proper eye hygiene is essential for preventing eye infections and irritation. Wash your hands frequently, especially before touching your eyes or handling contact lenses. Follow your eye doctors recommendations for contact lens care, including proper cleaning, disinfecting, and storage.Stay Hydrated: Dehydration can contribute to dry eyes, so be sure to drink an adequate amount of water throughout the day. Aim for at least eight glasses of water daily to keep your eyes and body hydrated.Get Plenty of Sleep:Adequate sleep is crucial for overall health, including eye health. During sleep, your eyes receive much-needed rest and replenishment. Aim for 7-9 hours of quality sleep each night to help reduce eye fatigue and maintain optimal visual function.By incorporating these simple yet effective tips into your daily routine, you can help protect and preserve your precious eyesight for years to come.Your eyesight is irreplaceable, so take care of your eyes today for a brighter tomorrow!

Moving Made Easy: Simple Tips for Seniors

Moving to a new home can be scary and stressful, especially for older people. But don't worry! Here are some easy ways to make moving day less scary and more fun.1. Pick the Right HomeFirst, choose a new home that feels good. Think about what you like. Do you want a garden view? Do you need help with cooking? Make sure your new home has what you need to be happy.2. Make ListsWrite down everything you need to do. This helps you remember important things. Start early and take your time. Don't rush!3. Choose Special ThingsWhen you move to a smaller home, you can't take everything. Pick the things that mean the most to you. It's okay to feel sad about leaving some things behind.4. Get Help from MoversHiring people to help you move can make things much easier. They know how to pack and move your stuff safely.5. Use Good BoxesUse boxes that stack well. Plastic boxes with lids are great because they're easy to pack and unpack.6. Say Goodbye to Your Old HomeHave a party to say goodbye to your old home. Take lots of pictures to remember it. This can help you feel better about moving.7. Think Happy ThoughtsMoving can be exciting! Think about all the fun new things you'll do in your new home. You might make new friends or try new activities.8. Pack a Special BagPack a bag with things you'll need right away in your new home. Put in things like:MedicineToothbrush and toothpastePajamasSnacks and waterThis way, you won't have to search through all your boxes on the first night.9. Make a Moving Day PlanPlan out your moving day. Know when you'll leave and when you should arrive at your new home. Don't forget to plan for breaks along the way.Remember, moving can be a big change, but it can also be the start of a great new adventure in your life!

Moving to Senior Living: What to Pack and What to Leave Behind

When moving to a senior living community, it's important to know what to bring and what to leave behind. This guide will help you pack smart for your new home.Before You Start PackingVisit Your New Home: Take a look at how big your new space is.Talk to Residents: Ask people who already live there about what they brought and what they wish they had.Check with Staff: Find out what furniture and items the community provides and which items are not allowed.Involve Family: Let your family pick items they might want to keep, especially heirlooms.What to BringClothes and Personal ItemsEveryday clothesToiletries like toothbrush and shampooMedicationsMobility aids, like walkers or canesSpecial ItemsPhotos and artwork that you loveSmall mementos that make you feel at homeFurniture (if there's room)A comfortable chairA small table or nightstandA bed (if not provided)Lamps for lightingOther Important ThingsBedding and blanketsKitchen items if you have a small kitchen areaTV or radio (if allowed)Pet supplies if pets are permittedWhat Not to BringExpensive jewelry or valuable items that could be lost or damagedClothes you no longer wearLarge furniture pieces that won't fitBig appliances that the community providesHeaters or air conditioners that may not be allowedLarge rugs that could be a tripping hazardRemember, your new home will be smaller, so you'll need to choose carefully what to bring. It's perfectly okay to ask for help from family or friends if packing feels overwhelming.