Best Guide to Assisted Living Tax Deductions

A Guide to Assisted Living Tax Deductions

Guide to Assisted Living , Memory Care , Tax Deductions



There are many benefits and amenities assisted living communities to provide in addition to quality care for the aging loved one. These benefits give older adults the ability to continue an active lifestyle, be in charge of their well- being and receive support in the comfort of their personal space. Older adults can enjoy many choices such as the apartment size, location, 5-star chef-prepared meals, enrichment, and purposeful social connections, and arrays of activities on demand. 

As older adults worry about safety and security, assisted living communities to meet that demand and provide aging in place for older adult and peace of mind. Careful planning is essential when looking at options for senior living for a loved one. That’s why we share crucial information regarding the potential tax deduction assisted living expenses.

Type of Assisted Living Care Services?

Depending on the type of services and level of care required, residents or their responsible parties may be able to deduct up to 100% of assisted living fees and some personal care services as medical expenses on their tax return.

What is Deductible?

When a licensed healthcare provider such as primary care doctor certifies that older adults need within 12 months assisted living expenses can be 100% deductible as medical expenses are unable to perform at least two activities of daily living such as eating, bathing, dressing, transferring, toileting  and continence care
Diagnosed with memory impairment such as dementia or Alzheimer’s diseases
For those who do not meet that requirement for 100%, you may be able to get some deduction for personal care expenses still, so please check with your tax advisor for more information.

What is Medical Expense Deduction?

Medical expense deduction is available to older adults or responsible parties who itemize deductions on their tax return when the total of their medical expenses, less any reimbursement from insurance or other resources. You can only deduct the portion of your medical cost that exceed 7.5 percent of your federal adjusted gross income in the 2018 tax year, and this threshold increases to 10 percent in 2019



Assisted living and memory care services can run thousands of dollars per year depending on the needs of your loved one. It’s important to look for all the options from large assisted living to the small residential care homes and on how to pay for it as well as how to save money.

We have helped many families find appropriate care options that offer high-quality care at a reasonable cost. Know that you have options and you do not have to settle for less. If you are in search and want to compare cost and care please contact us as soon as possible.

Please check referred to as well as your tax advisor for additional information and details on how Senior Living Deductions. As always, if you need resources for your elderly loved one, we are here to assist at 714-941-9242


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