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An assisted living facility is a long-term senior living option for older adults who need support with activities of daily living (ADLS), such as personal care, medication management, bathing, dressing, and toileting.
Rather than round-the-clock care though—like in a nursing home— assisted living can help fill in the gaps on an as-needed basis while still allowing the senior to enjoy an independent, engaging, and purposeful life!
According to the Genworth Care Survey, the average annual cost of a private one-bedroom in an assisted living community is $51,600, with a daily median rate ranging between $99 to $220 per day (depending on the state).
We know that there can be some sticker shock when viewing those numbers, but it’s important to understand the full scope of service that you receive for the cost. For example, these rates cover housing, personal care services, and overall support for someone who is precious to you—and you can’t put a price tag on that!
Fortunately though, you can still take part in some tax benefits that may be able to offset this bottom line cost. Learn more about this below or speak to a representative at Frontier Management for more information today.
Yes, if you live in an assisted living facility, you can generally write off a number of medical expenses included in the fees for assisted living as well as other qualified long-term care services on your taxes—with some qualifications and restrictions, of course.
In addition to this, the federal government also recognizes the financial burden on family members who help pay for assisted living for a loved one. That means that if you have a senior dependent in assisted living that is considered a dependent, then you may be able to take this deduction.
Or if you contribute more than 10% in support as part of a “multiple support agreement” that pays 50% or more of the resident’s support, you may also still be eligible for the deduction.
The IRS usually considers a qualifying relative to be a father, mother, grandparent, mother-in-law, father-in-law, stepmother, or stepfather. Here is information about claiming a parent as a dependent.
Any qualifying medical expenses that make up more than 7.5% of an individual’s adjusted gross income can be deducted from taxes, and you can only claim care expenses that you paid during the 2020 tax year.
For example, if your AGI was $50,000 last year, then you can claim the deduction for the amount of medical expenses that exceed $3,750.
As this is different than previous years in which the floor was set at 10%, taxpayers should learn more about all of the requirements to qualify for the medical tax deduction in the year 2020.
Requirements for Assisted Living Tax Deductibility
To deduct certain medical expenses, an assisted living resident must meet the following criteria:
A licensed health care practitioner, doctor, or nurse must certify that the resident is chronically ill; unable to perform a minimum of two activities of daily living (bathing, continence, dressing, etc.) on their own; or if they need substantial supervision because of dementia, Alzheimer’s disease, or another severe cognitive impairment for 90 days.
A plan of care must be prescribed by a social worker, doctor, or nurse. Most assisted living communities develop a plan of care using medical evaluation from a licensed healthcare provider, a needs assessment, and input from the resident and caregiver.
However, even if a resident does not meet the definition of “chronic illness,” they may still be able to deduct medical expenses, including entrance fees. Assisted Living communities and tax advisors are aware of these deductions and can provide specific information to help you or a loved one.
What Assisted Living Expenses are Tax Deductible?
Medical expenses generally make up at least a portion of the monthly service and entrance fees at assisted living communities. For some residents, the entire monthly rental fee might be deductible, while for others, only specific personal care services would qualify for a deduction.
Although you can’t deduct general health expenses, such as health club dues or vitamins, you can deduct many types of professional medical fees. Some common assisted living medical expenses that can be written off include:
By Rebecca Gershten, Community Outreach Coordinator, Kavod Senior LIfeOne day I was speaking with a Kavod Senior Life resident who I will call Shirley. She was using a hemi walker, which I had never seen before. She told me her physical therapist suggested it to help her with walking stability. This device looked like half a walker. It was lightweight, collapsible and could be used with one hand. Shirley recently had had surgery after falling and breaking her shoulder. Her arm had been in a sling and so she wasnt able to use a full walker. The hemi walker was a wonderful solution between no walker and a full walker. Who knew?She went on to tell me some other tricks her physical therapist taught her, like how to put on a top and what kinds of clothing to choose if dressing with one hand. Without therapy, Shirley certainly would have struggled with these basic needs, like dressing and walking, after her surgery.Thankfully, Shirley was on the mend, and smiled broadly when she spoke of her next physical therapy appointments. She emphasized how important they were to her continued recovery. She was learning to increase her range of motion and teach her muscles how to work properly again.Kavod Senior Life is happy to offer low-cost physical, occupational and speech therapy on campus in the Harry and Jeanette Weinberg Health & Wellness Center. Partnering with Legacy Healthcare Services, residents like Shirley only need to take elevator ride to the top floor of Kavods West Building, where Legacy is housed. They have the best view of the Front Range Mountains! And actually, therapists at Kavod will even do in-home services right in resident apartments.It isnt uncommon to see therapists and their clients around campus working together on various exercises walking together, using tabletops for hand strengthening, or trying exercise bands for muscle development. The talented Legacy staff are kind, creative and share Kavods values of putting the individual and his or her wellness first. Services are available to residents in both Assisted Living and Independent Living, as well as to members of the greater community.If you or someone you know could benefit from physical, occupational or speech therapy or has a doctors referral for these services contact Sara, Legacys Director at Kavod at LHSfirstname.lastname@example.org or by phone at 303.321.2452. You also can visit their website at https://www.legacyinc.com/. Again, clients do not need to live at Kavod. In fact, non-residents can take advantage of other classes and services during a therapy visit. Check out the list here.Overall, Kavod is proud to partner with Legacy to support residents and other older community members in living independently and well. Give us a call today to learn more about our caring, supportive Assisted Living apartments at 303.399.1146!
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The Auberge at Aspen Park is a community specifically designed to serve the needs of individuals living with Alzheimers disease, dementia and other forms of memory loss. At The Auberge, residents enjoy an active, engaging lifestyle that promotes wellness and independence. It is our goal to keep our residents linked to resources and opportunities that fulfill their needs and interests. Residents have opportunities every day to participate in a variety of life-enriching activities and events designed to stimulate the mind, body, and soul. Our talented team of dedicated and caring staff are there when you need them. Its Inspired Living Reinvented!