Tax Season 2018: Deductions for Assisted Living Residents – February 2018

As accountants across the country gear up for their busy season, now is the perfect time to discuss the deductions that are available to those who live in retirement communities and receive Assisted Living health care services.

According to Section 213 of the Internal Revenue Code, you or a loved one may qualify for tax deductions for medical care if the expenses exceed 7.5% of the taxpayer’s adjusted gross income. In fact, the monthly fee of an Assisted Living community is a medical expense if this level of care is prescribed by a licensed health care practitioner due to a medical condition. It further states that if a resident is living in an Assisted Living community because of a medical condition which requires them to be there, and meals and lodging are furnished, then the cost is considered a medical care expense.

Each year, Senior Housing’s individual communities provide itemized statements to residents to provide their tax professionals for this purpose. Knowing this information could help you make a decision to move to a community sooner than later, and we encourage you to reach out to us with any questions! We’re happy to provide resources and information that meet your individual needs.

Allen Phillips, President – February 2018